Withholding Tax Tables until the end of 2024

By Order (No. 9971-A/2024 of August 27) from the Office of the Secretary of State for Fiscal Affairs, the Government introduced a special mechanism that provides some relief in net wages earned from employment and pension income between September and October 2024.

This order revokes the previously applied tables and introduces two new tables: one to be applied to income paid or made available between September 1 and October 31, 2024, and another table to be applied to income paid or made available from November 1, 2024.

In practice, the reduction in withholding taxes brings the amount of withheld tax closer to what is actually owed by the taxpayer, resulting in an immediate increase in the amount they will receive at the end of the month. Thus, in September and October, you will be refunded the IRS amounts “overpaid” in the earlier months of the year.

From November onwards, the lower withholding tax rates intended to offset the excess tax withheld until August will no longer apply. The withholding tax rates will be adjusted and applied until new tables are approved according to the next State Budget.

The withholding taxes applied in November and December will be lower than those applied until August but higher than those applied in September and October. This means that, at the end of the month, the taxpayer will receive less than in September and October but more than in August.

For example:

• Single worker without children

• Pensionista 

Additionally, after the IRS is filed in 2025, the refund will necessarily be lower than it would have been without these changes to the withholding tax rates.  

If the paying entity is unable to apply the new withholding tax tables in September, any overpaid amounts should be deducted from the IRS amount to be withheld in October. If the full adjustment cannot be made in October, the remaining balance should be corrected in the following months until the end of the year, with the correct withholding applied in December.