Filing an annual tax return is only mandatory for certain categories of residents, but it often makes sense to file even if you are not obligated.
Because there is a likelihood that you overpaid taxes last year, meaning you are entitled to a partial refund.
Whether you receive this pleasant bonus by filing a return is most likely in the following cases:
- if you lived in the country for only part of the calendar year and need to complete the so-called M-form.
- if your employment contract changed, or you worked for only part of the year, or had a low income.
- if you had expenses that qualify for reimbursement (certain medical expenses, education costs (under certain conditions), charitable donations).
There is also a chance that the tax credits and deductions you are entitled to were not automatically applied. It is worth completing a return to ensure everything has been correctly accounted for.
And finally, an important reason to file an annual return is purchasing property or owning one with a mortgage. In this situation, you are entitled to deduct mortgage interest from your tax base. At least for now, although there are active political discussions about abolishing this deduction.