Income Tax calculation | Retroactive rate correction after residence permit receipt

Task #9080 | 5053.000

Situation:

employee is subject to IT up to and including August 2018, as s/he has been issued residence permit C in August 2018. In September 2018, s/he receives a wage without withholding tax deduction (no longer being subject to WT). In October 2018, the employer is informed that the employee was assigned a wrong IT rate in July and August.

We have checked such individual cases using the new TimeMachine feature ‘IT obligations’ and in this case retroactively corrected the rate only. The rate correction (July/August) was correct in the October payslip.

Individual calculation cases are highly complex. We look forward to your feedback if calculations could not be done correctly in an individual case.