Tax Relief

By saving under supplementary pension insurance, you are entitled to special tax relief. Contributions paid in a given year reduce your personal income tax base, and the state refunds part of your tax or reduces any additional tax payable.

Tax relief applies to contributions of up to 24% of the mandatory pension and disability insurance contributions paid, which equals 5.844% of your gross salary.

For those with higher salaries, the amount of tax relief is capped at EUR 3,224.18 per year.

If you are employed in the private sector, the employer has the primary right to claim the tax relief first (for collectively paid premiums), while you may claim the remaining part (for individually paid premiums).

If you are employed in the public sector, you may use the special tax relief in full, regardless of the amount of the premium paid by your employer.

The final deadline for reducing personal income tax for the current year is the last working day in December. Pay attention and do not wait until the very last moment unless necessary. If you pay the premium on the last day and outside payment system operating hours, the relief will be recognised in the following year. The funds must reach Modra's account in time.

Many people wait until the last month and pay a high premium only in December. Nevertheless, tax relief is taken into account for all premiums paid during the entire year. You can ease pressure on your December budget by arranging monthly premium payments.

No. Reporting to the tax authority (FURS) is Modra's responsibility.

Each year by 31 January, Modra prepares a certificate of premiums paid, which serves as the basis for verifying the accuracy of the informative personal income tax calculation sent to you by FURS. Your only task is therefore to verify the accuracy of the data in the informative tax calculation you receive.

1. December is the last month in which you can reduce your personal income tax base by using tax reliefs. One of the best tools is supplementary pension insurance.

2. For many employees, the supplementary pension insurance premium is already paid by the employer. This applies to all public sector employees and many other employees in the private sector.

3. You may also accumulate savings in a supplementary pension insurance savings account yourself. By saving for an additional pension, you also reduce your personal income tax assessment.

4. The state refunds part of your income tax or reduces any additional tax payable. Tax relief applies to contributions of up to 5.844% of your gross salary, but not more than EUR 3,224.18.