ENG Economy and Business
BRATISLAVA, June 25, (WEBNOVINY) — Changes to taxes and payroll levies for de facto sole traders with real expenditures, as proposed by the current government, will harm them more than plans of the previous government, thinks the Slovak Business Alliance (PAS). “Sole proprietors with real expenditures at 40 or 60 percent of gross income will pay more to the state within the current reform than they would have paid after the implementation of the reform of the previous government no matter what income they have, says the alliance. Conversely, impacts of the current reform on sole proprietors with zero real costs and gross monthly income from EUR 720 to EUR 2,880 will be softer compared with impacts of the reform that the previous government had prepared but failed to realize.
After the change of taxes and social and health insurance levies a sole proprietor with income of EUR 1,000 will pay to the state EUR 21.50 monthly more than currently, according to PAS calculations. It applies to self proprietors with zero real costs and to sole proprietors with real costs achieving 50 percent of their income. With income over EUR 1,500 and higher, impacts of the proposed changes increasingly differ depending on real costs. A sole proprietor earning EUR 1,500 and not having real costs will lose EUR 173 while a sole proprietor with 40-percent costs will lose EUR 92 percent and those with 60 percent costs will pay EUR 22 more to the state. Yet, the reform will leave a small group of sole traders earning from EUR 347 to EUR 393 with extra EUR 109 monthly after the reform as the result of the increased cap for registration in the social security provider and the duty to pay social insurance levies.
SITA
