The benefit was introduced into legislation last year when Parliament approved the fiscal policy for 2025. The deduction is allowed for the 2024 tax period. Its amount is calculated cumulatively, based on the total number of children and for all types of education specified in Article 15 of the Education Code. Including nurseries, kindergartens and all types of primary, secondary, vocational and higher education. Both parents are entitled to deduct the expenses paid for their children’s education separately.
Also from this year, individuals have the right to deduct expenses for voluntary health insurance contributions or for the conclusion of a contract for the provision of medical services. For example, dental services. However, this is only available to persons insured in the compulsory health insurance system.
A year earlier, the legislation introduced a provision on the right to a deduction for the purchase of insurance premiums on the basis of a life insurance contract. This year lawmakers added health insurance, as well as insurance against fire, floods and other natural disasters. In all these cases it is necessary to submit supporting documents, including a bank account statement.
In addition, this year the law authorizes the deduction of compulsory health insurance contributions. As well as the deduction of mandatory contributions to the state social insurance budget paid by individuals during the tax period of 2024, in the amounts established by law.
Since last year, citizens in the payment of income tax is allowed to deduct the amount paid in the form of interest on mortgage loans, but only for the purchase of the first home. Except for contracts concluded under the state program “Prima casa”. And if last year only a mortgage agreement could serve as a supporting document, this year it is possible to submit a loan agreement as well, says Irma Zurabishvili, Head of Direct Taxes Department of the State Tax Service. In the case of housing in common ownership, the deduction is allowed to each recipient of a mortgage loan, in proportion to his share.
The right to all deductions is granted in the amount of the average monthly wage in the economy, approved by the government for the relevant year. This year it amounts to 16,100 lei.
We would also like to remind you that this year the amount of income tax exemptions for individuals has increased. The personal exemption is set at 27,000 lei. It is valid for individuals with an annual taxable income of less than 360,000 lei. The preferential personal exemption has been increased up to 31,500 lei per year. It can be used by citizens, victims of political repressions, those who participated in overcoming the Chernobyl accident, participants of combat operations in Transnistria and Afghanistan, as well as persons with disabilities.
The increases were made in response to experts’ strong criticism of the government for not indexing personal income tax exemptions for several years.
It should also be recalled that this year too, citizens can transfer 2% of the income tax amount to one of the recipients of the so-called percentage deduction. It can be a church or a non-governmental organization included in the relevant list. It is available on the official page of the State Services Agency. But this can only be done by individuals who have no income tax arrears for previous tax periods.
There is a negative nuance. If in the case of filing an income tax return we can talk about the simplification of the procedure (it can be submitted electronically or in paper form, as well as by mail), then for the interest deduction it has become more complicated. In this case, the declaration (form CET18) must be filed exclusively electronically.
The deadline for filing declarations by individuals is approaching inexorably on April 30, 2025. In the last two weeks before that, the offices of the State Tax Service will work in a special mode, which can be found on the website of the agency.
