The amendment of the Income Tax Act, which is currently in development, proposes stricter conditions for claiming the tax credit. So far the tax credit can only be claimed by taxpayers whose total income for the given period – income from employment, from business activities, from investments, and from leasing – amounts to at least six times the minimum wage. This total income does not include the exempted income, i.e. the income which is subject to withholding tax. The new legislation stipulates that the total income should include only “active income”, i.e. income from employment and from business activities, which should remedy the current situation when some taxpayers claim fictitious income from leasing based on which they become entitled to the tax credit.
