Income Declaration for 2024: What to Know in 2025 – Deadlines, Procedures, and More
Income declaration is an important procedure for both individuals and businesses. Declaring annual income ensures accurate tax calculation and allows taxpayers to claim refunds for overpaid taxes.
This article covers the key information about declaring income for the year 2024, including deadlines, procedures, and frequently asked questions.
When Can You Start Declaring Income?
Income declaration typically begins in March. The State Tax Inspectorate (VMI) updates the official start date each year on its website and in the “Mano VMI” (My VMI) system.
You can submit your income declaration as soon as the declaration period begins. Submitting early can speed up the process of receiving tax refunds, so it’s recommended to declare as soon as possible.
Declarations submitted via the “Mano VMI” system are usually confirmed within a few days. If you declare before May, VMI has more time to verify your data, and refunds are processed faster—meaning you could receive your refund well before the final deadline.
Personal Income Tax (GPM): Payment and Refunds
The personal income tax (GPM) is one of the main taxes that must be calculated and paid when submitting your annual income declaration.
When declaring income, you calculate how much GPM you owe the state for the income earned during the year. In some cases, you may be eligible for a refund if you overpaid taxes or qualified for certain deductions.
Taxes must be paid by the end of May. This can be done through the “Mano VMI” system, which provides the exact amount due, or directly via your bank using a unique payment link.
If you are eligible for a refund, you can claim it by submitting a declaration that includes the appropriate deductions and expenses. Refunds are typically issued within a few months of submission.
Possible GPM Deductions:
- Mortgage interest: Interest paid on home loans can be deducted.
- Education expenses: Tuition fees may qualify for a deduction.
- Pension contributions: Payments to second- or third-pillar pension plans can reduce taxable income.
These deductions not only lower your tax liability but may also entitle you to a refund if your deductible expenses exceed a certain threshold. The declaration system will show how much you owe or can expect to be refunded.
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FAQ – Frequently Asked Questions About Income Declaration
When is the deadline to declare income? Income for 2024 must be declared by May 2, 2025. Late submissions may result in penalties, so timely and accurate declaration is advised.
How do I fill out the income declaration? Use the “Mano VMI” system. You’ll need to provide all income, expenses, allowable deductions, and applicable tax reliefs.
What tax deductions and reliefs are available? Deductions may apply for:
- Child support
- Mortgage interest
- Education expenses
- Pension contributions
- Business-related expenses for self-employed individuals
What documents are required? You may need to submit supporting documents such as:
- Receipts
- Invoices
- Employment contracts
- Loan agreements
- Any documents related to declared income and expenses
How are taxes calculated? Taxes are calculated based on your total annual income and applicable deductions. The main tax is GPM, which is 15% or 20% depending on income level. All related expenses and deductions are included to reduce the taxable amount.
What happens if I declare incorrectly? Incorrect declarations may result in fines or interest. VMI may require additional taxes or request clarification. To avoid issues, double-check your information or consult a financial expert.
How do I pay the income tax? You can pay via the “Mano VMI” system or directly through your bank. The system generates payment links and shows the amount due. It’s best to pay by the end of May to avoid penalties. If the amount is large, you can request a payment schedule.
How can I check the status of my declaration? Log in to “Mano VMI” to check your declaration status. It will show whether it’s accepted, confirmed, or if further action is needed. If there are errors, VMI may request additional documents or corrections.
