Income tax is a community tax levied on the income of all individuals. In general, self-employed individuals are obliged to pay income tax, while employed persons are obliged to pay wage tax. The wage tax differs from the income tax only in how it is levied. However, the tax rate is the same. A so-called subsistence minimum must remain tax-free for everyone, which is why there is a basic exemption amount for income tax. This was increased from 9,408 euros to 9,744 euros in 2021 and will be raised again to 9,984 euros in 2022.
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