Module 222 min2210 wordsFree — no account
The substitute tax on the revaluation, its payments and TFR advances
The module’s worked examples, then cases to attempt before revealing their solution · 4 sections · 383 words · 4 min
Worked example
A large fund, a small tax
A business keeps an overall TFR fund of 50,000 € in-house. Suppose the revaluation worked out on 31 December, at that year's rate, is 900 €. The substitute tax is 17% of 900 €, that is 153 €, and not 17% of 50,000 €. The fund and the year's accrual stay out of the base.
Worked example
When the historical figure weighs too much
In 2025 a firm's revaluations came to 1,000 €, but its longest-serving employee left in March 2026. The employees on the payroll at 30 November 2026 had a fund of 40,000 € at 31 December 2025. On the fixed part alone, the 2026 revaluation is at least 40,000 × 1.5% = 600 €; the variable part depends on the index and has to be estimated. Setting that against the historical 1,000 € guides the choice.
Worked example
A request for a first home
An employee with ten years of service asks for an advance to buy her first home, evidenced by a notarial deed. At the date of the request the payment she would be owed is 18,000 €. The maximum advance is 70% of that sum, that is 12,600 €. When employment ends, the TFR paid will be reduced by the amount advanced.
Practical case
Historical advance and balance for a workshop
A workshop keeps all its employees' TFR in-house. The revaluations accrued in 2025 total 1,000 €; in 2026 no employee directs TFR to a pension fund. The workshop chooses the historical method. At the end of 2026 the year's actual revaluations come to 1,200 €. How much does it pay, by when, and under which tax codes?
Hint: The advance uses 90% of the previous year's revaluations; the balance applies the rate to the year's revaluations and subtracts the advance.
Show the solution
Advance: 90% of 1,000 € gives a base of 900 €, and 17% of 900 € is 153 €, due by 16 December 2026 under tax code 1712. Balance: 17% of 1,200 € is 204 €; after taking off the 153 € advance, 51 € remain, due by 16 February 2027 under tax code 1713. In all the workshop pays 204 €, the tax due on the 2026 revaluations.
Answer: Advance of 153 € by 16 December 2026 (1712), balance of 51 € by 16 February 2027 (1713)
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