Income tax exemption for salaries of young students up to age 25, capped at three times the monthly minimum wage

Article 4 of the TEPA Act rewrites paragraph 36 of Article 81 of the General Tax Code. On option, salaries received by young people aged 25 or under on 1 January of the tax year, for work done during their secondary or higher education or during school or university holidays, are exempt from income tax up to three times the monthly minimum wage (SMIC) per year. Public employees paid as part of their training are excluded. The option can be exercised in the young person's own return or in that of the household to which they are attached. The measure applies from the taxation of 2007 income.