The self-employed should pay only one tax and one levy, similarly to employees and employers. Their income tax rate should amount to 19 percent of their gross salary while their insurance contribution should amount to 29 percent of their tax base.
This stems from another package of measures that are part of the planned reform of taxes and levies presented by Finance Minister Igor Matovič (OĽaNO).
He also presented changes for restaurants, which include lower taxes and changes to the restaurant menus, including a free jar of water for customers.
Matovič wants the self-employed to pay more
Currently, the income tax for the self-employed with a gross income of less than €100,000 a year amounts to 15 percent. Instead of the lump-sum expenses, they would apply the so-called flat tax for self-employed people at 29 percent of their gross income.
This flat tax should be a summation of income tax and both social security contributions and health transfers, according to Matovič.
“Maybe in the end we won’t get any additional money from the self-employed, but I would be very happy for them to pay more,” he said, as quoted by the SITA newswire. He added that the levy rate for them should be one quarter lower than the one for regular employees.
Currently, the self-employed only have pension and sickness insurance and are required to pay health transfers. On the other hand, employees have unemployment, injury and guarantee insurance.
At the same time, two million employees are currently paying €16 billion in taxes and levies annually, which represents €8,000 per employee. On the other hand, 400,000 self-employed pay only €800 million on taxes and levies annually, which represents an average of €2,000 per self-employed person, Matovič continued.
“The entire state lies on the shoulders of employees; the self-employed contribute only a fraction to the state coffers,” he added, as quoted by SITA, adding that if the self-employed paid the same taxes and levies as full-time employees, the state would receive €2.4 million more a year.
Changes for restaurants
The minister also presented changes for restaurants. He wants to decrease the value-added tax (VAT) they have to pay from the current 20 percent to 10 percent.
Under the proposed rules, tips should also be subject to VAT. At the same time, tips should amount to about 9 percent of the price of meals, excluding VAT. Restaurants should subsequently divide all tips as rewards for employees.
“We would legalise tips so restaurants owners can give this money to staff and increase their legal wages,” the finance minister said, as quoted by SITA.
Matovič also proposes that restaurants offer child menus, i.e. halved portions of every meal at half the price. The gastronomy sector should also introduce eco-menus, offering half-size portions for three-quarters of the meal price.
In addition, a free jug of water should be offered with every meal.
The tax reform for restaurants would reduce the state incomes by €40 million a year, according to Matovič.
Bonus for the vaccinated
Every person aged 60 and over who has gotten vaccinated or plans to get vaccinated against Covid between early July 2021 and December 12, 2021 should be entitled to a recreational and gastro bonus of €300.
One needs to be fully vaccinated to receive the money, Matovič stressed. Those aged 60+ who were fully vaccinated with two vaccine doses as of early July would receive the bonus only after getting the third shot. Those who have not been vaccinated yet but are scheduled to receive the first jab by December 12 would also be entitled to the bonus only after receiving the third shot, he added.
People will be able to use this bonus next year too or transfer it to another person.
“This is how to significantly accelerate the vaccination of people in this age category who still want to get jabbed,” Matovič said, as quoted by SITA.