Housing Deductions: Real estate taxes (ITA § 26)
Education Deductions:
- Tuition fees for self or dependents (ITA § 26).
- Training expenses related to the taxpayer's profession, with a limit up to 1,200 euros, not exceeding 50% of the taxpayer’s taxable income
Healthcare Deductions: Medical expenses not covered by health insurance (ITA § 26)
Investment Deductions:
- Contributions to pension funds (ITA § 26)
- Contributions to voluntary pension insurance, with a limit up to 15% of the taxable income or a maximum of 6,000 euros per year (ITA § 26)
Charitable Contributions: Donations to eligible charitable organizations, within the same limits as training expenses (ITA § 26)
Tax Credits:
- Child tax credit (ITA § 29)
- Disability tax credit (ITA § 29)
- Elderly tax credit (ITA § 29)
- Study loan interest deduction (ITA § 29)
Exemptions:
- Income from social benefits, scholarships, and inheritances (ITA § 15)
Special Considerations:
- Family benefits, such as child allowances and maternity benefits (Family Benefits Act)
- Tax benefits for disabled persons (Social Tax Act)
Legal Provisions:
- Income Tax Act (ITA): § 26, § 29
- Family Benefits Act
- Social Tax Act
The deductions and benefits outlined in the Income Tax Act aim to incentivize certain behaviors, such as homeownership, education, and charitable giving while providing relief for necessary expenses like healthcare and pension contributions.
Tax credits and exemptions are designed to alleviate the tax burden on specific groups, such as families with children, individuals with disabilities, and the elderly, to promote social welfare and equity.
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