When a person is employed under an employment relationship by two separate employers, it is possible for the same person to work only with the additional employer and to receive a monthly salary only by him, on which tax and mandatory social security contributions should be withheld.
If the person has not worked throughout the year and has not had tax withheld by his main employer, several important questions arise:
– Who has the obligation to make the annual recalculation of the employee’s tax, provided that no tax has been withheld by the main employer and the additional employer has not made a recalculation of the tax?
– In this case, is the employee obliged to submit the annual tax return on time under Article 50 of the Personal Income Tax Act (PITA) in order to declare the tax withheld from him by the additional employer?
According to the Personal Income Tax Act, the employer, by January 31 of the following tax year, calculates the annual tax base for income from employment relationships, reduced by tax reliefs, and determines the annual amount of tax, when as of December 31 of the tax year he is the employer under the main employment relationship of the worker or employee.
When the worker or employee has or has had an employment contract for additional work with another employer during the tax year, the employer includes the income acquired by the other employer when calculating the annual tax base and determines the annual amount of tax if the worker/employee provides him with an official note from the other employer.
Therefore, in the event that the person does not provide an official note from the additional employer, as this is optional, the employer under the main employment relationship will not carry out annual taxation of income from employment relationships, as long as the same has not paid any.
In accordance with the Personal Income Tax Act, not required to file an annual tax return are persons who have only received:
– income from employment relationships, when as of December 31 of the tax year the person has an employer under a main employment relationship and he has determined the annual amount of tax for all income from employment relationships acquired during the tax year and the full amount of tax for the tax year has been withheld by January 31 of the following year, and/or
– income from employment relationships, when as of December 31 of the tax year the person does not have an employer under a main employment relationship or has one, but he has not determined an annual amount of tax for all income from employment relationships acquired during the tax year, if the following conditions are simultaneously met:
= the tax on the total annual tax base is equal to the advance withheld tax, and
= the person does not benefit from tax relief under the law.
Given the above, provided that the worker/employee meets the last mentioned condition, he will not be obliged to file an annual tax return under Article 50 of the Personal Income Tax Act.
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