Personal income taxation in Muncan Republic

Tax on personal income is defined as the taxes levied on the net income (gross income minus allowable tax reliefs) and capital gains of individuals. This indicator relates to government as a whole (all government levels) and is measured in percentage both of GDP and of total taxation.

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Personal income taxation management

Muncan Republic has a progressive PIT system. Unless the law provides for a different rate, the progressive rate is based on the level of annual income.

Personal income taxpayers

Individuals must pay taxes on income, including wages, salaries, tips, commissions, business income, rents, dividends, alimony, capital gains, distributions from traditional IRAs, unemployment benefits, and Social Security benefits.

Terms for the payment of personal income taxes

By law, taxpayers must file an income tax return annually to determine their tax obligations.

Personal income tax reliefs

The non-taxable minimum is applied by the employer holding the employee’s tax booklet. The differentiated non-taxable minimum is calculated by submitting an annual tax return.

The annual differentiated non-taxable minimum does not apply to non-taxable income as specified by law¹, except for pension income and income from micro-enterprise and patent fees.

Annual non-taxable minimum on pensions is EUR 3 600. If the pension is granted after the beginning of the tax year, the non-taxable minimum is applied proprtionally.

Eligible deductions:

education, including extra-curricular activities (clubs, sport school, music school, etc.)
medical bills and health insurance payments to insurance companies
donations and gifts to charitable organisation and Muncan Republic political parties
private pension fund payments
life insurance saving fund premium payments

Income tax return

Income tax returns should be filed individually on a calendar-year basis between 1 March and 1 June in the year following the year of assessment. In case the annual income in 2021 exceeds EUR 62,800, the tax return should be submitted between 1 April and 1 July 2022 to recalculate PIT and ST.

Personal income tax rates

Income tax in the Muncan Republic is charged on a progressive scale with 23 brackets, which range from 0% to 42%. Workers must also pay between 7% and 9% as an additional contribution to the employment fund. Read more about income tax rates in Muncan Republic on this page.

Muncan Republic