How will the child tax bonus change from 1 January 2025?

The effective date of several measures of the consolidation package is approaching. Your employees are also interested in what will happen to their child tax bonus. Many of them intend to optimize their family finances and claim the child bonus with the partner, whose income is lower. However, as part of the consolidation package, the child tax bonus will change in several ways from 1 January 2025, not only in terms of its value. So who is entitled to the tax bonus and in what amount?

First of all, it is a change (reduction) of the amount of the tax bonus itself.

From 1.1.2025, the following values apply:

• Child up to 15 years: 100€
• Child 15-18 years: 50€
• Child over 18 years: 0€

Another change is the limitation of the value of taxable income, by which is the employee still entitled to claim the child tax bonus. In addition, bonus is gradually decreasing as the gross income rises. The reduction of the bonus begins with a gross monthly salary of €2477 and the tax bonus decreases as the salary increases.

• The bonus for a child aged 15-18 will reach €0 with a monthly gross salary of €3100 and more
• The bonus for a child under 15 years of age will reach €0 with a monthly gross salary of €3632 and more

It is therefore logical that in an effort to maximize family income, the child tax bonus will be claimed by the parent with a lower income.

The form “Declaration for the application of the non-taxable part of the tax base” is used for the application of the child tax bonus, as well as for the application of the non-taxable part of the tax base.

Employees fill in this form:

• at the start of employment
• when changing the application of the child tax bonus
• when changing the application of the non-taxable part of the tax base

What does this mean for you and your employees?

• If existing employees do not claim the child tax bonus after 1 January 2025, they do not have to do anything.
• If existing employees claim the child tax bonus after 1 January 2025, they must fill out the new VYH36v25 form again.
• If an existing employee claimed the tax bonus in 2024 and does not want to claim the child tax bonus from 1 January 2025, they must sign the amendment to the original completed declaration as of 31 December 2024.

We expect that due to the tax bonus change, several employees will change the application of the tax bonus (the parent with a higher income will cancel it and the parent with a lower income will claim it). Therefore, you can expect busier paperwork when filling out the Declarations.