| Pages in topic: < [1 2] | Social insurance contributions (freelancers) around Europerope Thread poster: Anton Baer
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Anton Baer 
United Kingdom
Local time: 20:04
German to English
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TOPIC STARTER | Bear in mind upward limit | Jun 24, 2011 |
Lawyer Linguist,
bear in mind the upward limit for income that each country applies. In Portugal it may be lower than, say, 3000 euros monthly. That 29 percent, also, may be all the SS contribs rolled together, and some of them may not be mandatory.
And it's taxable income that is the guide, not net income.
Here in Slovakia the maximum amount anyone would pay would be around 900 euros a month, and to pay that you would have to be earning a lot of money indeed. At... See more Lawyer Linguist,
bear in mind the upward limit for income that each country applies. In Portugal it may be lower than, say, 3000 euros monthly. That 29 percent, also, may be all the SS contribs rolled together, and some of them may not be mandatory.
And it's taxable income that is the guide, not net income.
Here in Slovakia the maximum amount anyone would pay would be around 900 euros a month, and to pay that you would have to be earning a lot of money indeed. At around 5,000 euros, you would pay around 430 all told (in SS). Unless Portugal is radically different, the balance/ratio is probably similar. ▲ Collapse
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If I understood my accountant correctly, my INPS (Social Security) payments were the biggest chunk of my tax bill, 27% of my net income (I think...)
| | | | Holly Nathan (X)
Italy
Local time: 21:04
Italian to English
| and on the up | Jun 24, 2011 |
Miranda Drew wrote:
If I understood my accountant correctly, my INPS (Social Security) payments were the biggest chunk of my tax bill, 27% of my net income (I think...)
and it looks like they are going up to 33%, according to another forum discussion here on proz (really ruined my Friday that did!!!)
| | | | | SS or pensions? | Jun 26, 2011 |
Miranda - I think Italian INPS is actually a pensions payment rather than a more general social security payment.
I've been rabitting on about this on another thread: basically you're forced to pay huge amounts into a fund that in all probability will only pay you back a slice of what you've contributed... and then you'll be taxed heavily on your pensions income.
The cheapest option is to die right now!
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Anton Baer
United Kingdom
Local time: 20:04
German to English
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TOPIC STARTER | Update Slovakia | Jul 16, 2015 |
Things have changed here in Slovakia over the last five years.
Freelancers earning 3,000 euros a month will pay around 1,100 of that in social security, and over 400 in health care. (The amounts seems to go up every six months.) And then there are taxes.
If you become a limited liability company, ostensibly you pay 22% on profits. However, the government also added on to that a 14% tax on profits for the health care sector. So if you make 10,000 a year, 2,200 goes to t... See more Things have changed here in Slovakia over the last five years.
Freelancers earning 3,000 euros a month will pay around 1,100 of that in social security, and over 400 in health care. (The amounts seems to go up every six months.) And then there are taxes.
If you become a limited liability company, ostensibly you pay 22% on profits. However, the government also added on to that a 14% tax on profits for the health care sector. So if you make 10,000 a year, 2,200 goes to the corporate tax and 14 percent is then levied on the 7,800 left over, or 1,092, resulting in an overall tax of 3,292 euros, or 33 percent of that 10,000.
So it's better in the here and now to be a ltd., but this means you are contributing very little to the social insurance scheme and will not get much of a pension.
Normally there' a personal tax deduction of something like 3,300 euros (in the UK it's around 10,000 pounds.) If as a freelancer you earn over 19,000 euros, though, they take that deduction away.
I'm not sure of the level of state corruption in western Europe, but here it puts quite a sting in the handover. ▲ Collapse
| | | | S_G_C (X)
Romania
Local time: 22:04
English to Romanian
| Romanian contributions | Jul 16, 2015 |
In Romania, a freelancer registered with the National Financial Agency, through its local bodies (one for each county), pays the following taxes:
16% income tax - applicable to the net income. Upon their registration, freelancers must submit a financial statement anticipating their revenues for the current year. When doing this, they are held to pay the income tax applicable to this anticipated income. One can pay it by trimester, or in whole, for the entire year. The following year... See more In Romania, a freelancer registered with the National Financial Agency, through its local bodies (one for each county), pays the following taxes:
16% income tax - applicable to the net income. Upon their registration, freelancers must submit a financial statement anticipating their revenues for the current year. When doing this, they are held to pay the income tax applicable to this anticipated income. One can pay it by trimester, or in whole, for the entire year. The following year, the freelancer must submit an adjusted financial statement, containing the actual revenues for the year passed. The financial officers then calculate the difference and decide whether the tax paid was too much or too little. If too much, the difference is returned to the freelancer's bank account, if too little, the freelancer is informed that he or she has to pay the additional amount of...
26.3% CAS. CAS refers to the pension fund contribution, and the percentage indicated applies to the revenues declared by the freelancer as insurance amount (calculation basis). However, this insurance amount is limited both downwards (lower limit, not less than) and upwards (upper limit, not more than). The amounts due are paid in a trimestrial manner, in four equal installments, until day 25 inclusively of the last month of each trimester.
5.5 % CASS. CASS refers to the health insurance. It applies to the net yearly revenues and is again paid in a trimestrial manner, in four equal installments, until day 25 of the last month inclusively of each trimester.
And, optionally, 0.5% contribution to the unemployment fund. There is yet another contribution that a freelancer may choose to pay - the FNUASS one. This is payable if a freelancer desires to receive some payment for his or her medical leaves. It amounts to a monthly percentage of 5.5%.
If there might be exemptions to the CAS contribution, the income tax and CASS are compulsory. ▲ Collapse
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