Reaching the Age of 26 and Eligibility for Tax Benefits: What Did the Supreme Administrative Court Decide?

At the end of May, the Supreme Administrative Court dealt with a cassation complaint from the tax administrator, who denied the tax benefit for a child born on the 1st day of the month who reached the age of 26. The court addressed the question in judgment no. 4 Afs 288/2023-52 of whether the child completed the 26th year of age precisely on their birthday or on the preceding day. The tax administrator argued that the plaintiff was no longer entitled to the tax benefit because the conditions for its provision were not met.

The main point of dispute was the interpretation of the condition "until reaching the age of 26," which determines eligibility for the tax benefit. The Supreme Administrative Court stated that the decisive factor is whether the child meets the conditions for the benefit at the beginning of the month, not during the month. The condition is the completion of 26 years, which means that if a person’s 26th birthday is, for example, on April 1, they complete the age of 26 at the start of that day, i.e., at midnight between March 31 and April 1 (00:00 on April 1), and not during the entire day. For this reason, the conditions for granting the tax benefit were not met at the beginning of the month.

The court also responded to the regional court’s argument, which pointed out the possible disadvantage for persons born on the 1st day of the month. However, this approach was inconsistent with the time framework set by the legislator. Although the disputed amount of the denied benefit was small, the Supreme Administrative Court appreciated the plaintiff’s stance, thanks to which the moment when the age limit is considered reached was clarified.

In case of doubts, do not hesitate to contact the PKF APOGEO tax team.