Income from salaries and pensions up to 710 euros monthly gross is no longer subject to IRS withholding
The update of the minimum monthly wage, which is the reference for the application of the minimum subsistence income, determines the adjustment of the IRS withholding tables for 2022. As a result, a greater number of taxpayers will be exempt from or will see their payment of this tax substantially reduced.
Salaries and pensions up to 710 euros per month gross - with the increase in the national minimum wage to 705 euros as of next year - will no longer be subject to withholding tax. "The withholding tables for 2022 continue the progressive adjustment that has been made in recent years between withholdings and the amount of tax to be paid.
The combined effect of the update of the minimum monthly wage and the progressive adjustment between withholding taxes and the amount of tax payable corresponds to an adjustment of around 175 million euros. It should be noted that over the past three years, the update of the withholding tables had already meant an adjustment of about 500 million euros.
