Tax Coordination: a Brief Guide

December 3, 2025

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What is Tax Coordination?
This is a procedure for employees to prevent paying excess tax when there are incomes from multiple sources.

Which circumstances require tax coordination?

Income from multiple sources: Simultaneously working at two or more jobs, working and receiving an early pension, working and receiving an allowance, or working and receiving additional income.
Changing jobs during the course of the year
Absence of employment continuity: Returning to work after receiving maternity benefits, unemployment benefits, unpaid leave, or stopping work. In these cases, since the tax system calculates tax for the entire year and does not recognize the period when you did not receive salary, you may end up paying taxes as if you received full income throughout the entire year.
Eligibility for tax reliefs: The reliefs are usually given automatically once Form 101 is completed and submitted to the employer at the beginning of each tax year or at the beginning of new employment. However, special tax reliefs (such as tax credit for a dependent with no capacity, changes during the year) can require a dedicated tax coordination to be performed.

How is a tax coordination executed?

In person: Fill out and send Form 116 + required documents via the information station at the Tax Authority offices – deliver the documents in an envelope with your name and the address to which you want the tax coordination to be sent. Or, via a tax assessor at the Tax Authority – schedule an appointment in advance.
Digitally: On the Tax Authority website
Through an authorized representative – accountant or tax advisor

Important to know:

The service is free of charge, unless you choose to use the assistance of a third party.
An authorization to the employer regarding tax coordination is valid until December 31st of the year.
It is recommended that tax coordination be performed at the beginning of the year, but it is possible throughout the entire year.
Tax coordination is valid for one tax year only, and must be renewed annually.
If you did not perform a tax coordination, you can submit a tax refund request up to 6 years retroactively

Please note!
Employees with income from multiple sources should arrange deduction coordination with the National Insurance Institute to avoid paying insurance fees higher than required

For additional information:
Tax Authority website
Tax Authority call center: *4954
To download Form 116

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Tax Coordination: a Brief Guide