← Tax Optimization · Individuals
The childcare allowance — the 12-month qualifying period doesn't have to be consecutive
Many expecting parents wrongly believe the 12 qualifying months must be uninterrupted — a misreading that can make them give up, without reason, on income they're entitled to.
What the law says
The eligibility condition for the childcare allowance is 12 months of taxable income within the last 24 months before birth — but these 12 months don't have to be consecutive. You can combine periods of salary, PFA activity, copyright income, or agricultural income, even if interrupted by periods of unemployment or other leave. The one clear exception: dividends aren't counted toward the qualifying period.
OUG 111/2010, as amended in force for 2026.
How it applies, in numbers
Illustrative example: someone worked 7 months as an employee, then had 4 months of unemployment, then 5 months of PFA activity, all within the last 24 months before birth. The 7+5=12 months of taxable income meet the qualifying period, even though they weren't consecutive and were interrupted by a period with no income.
Common mistakes
The common mistake is assuming an interruption (unemployment, a period without a contract) automatically cancels the previously accrued qualifying period — that's not the case, the periods add up within the 24-month window. If you're planning a birth, check well in advance exactly how many months of taxable income you've accumulated.
