ST has been in place since 1 January 2016. ST is applicable on income that exceeds the maximum income attracting NSIC, i.e. EUR 78,100 a year in 2022.

During the year it is payable at the same rate as NSIC: 23.59% for employer and 10.5% for employee. 

However, the effective ST rate is 25%. Thus, the employer will receive ST refund by September 2023 for excessive ST payments made in 2022.

Under the ST Act effective from 1 January 2019, the ST paid will be split as follows:

• 1 percentage point to finance healthcare services, with 0.5 points coming from the employee’s part of ST and 0.5 points from the employer’s part of ST
• 10 percentage points become PIT, and
• the rest goes into the special budget for state pensions (impersonalized).

The ST Act does not provide for a different split if a person’s NSIC rate is lower than the standard rate. So the fixed percentage points apply to all ST payers regardless of their NSIC status and rates used.

The ST payer will also be required under the PIT Act to file their 2021 tax return between 1 April 2022 and 1 July 2022 in order to recalculate ST and PIT.