Tax seminar 2013 physical persons
34
1 Bart Waterloos Income Tax of physical persons 2013 Including self-employed persons and changes to social and health insurance
description
Imposte sul Reddito per le Persone Fisiche, Compresi i Lavoratori Autonomi e le Modifiche alle Assicurazioni Sociale e Sanitaria (Bart Waterloos, VGD/AVOS): Il Dott. Waterloos ha illustrato i cambiamenti principali nella legislazione fiscale del 2013: la tassazione degli individui fiscali è stata portata in alcuni casi al 25%, mentre la base fiscale rimane al 19%, e vi sono stati cambiamenti alla quantità di riduzioni fiscali ottenibili, alla tassazione sul reddito, sui benefit e sui dividendi. Le entrate della tassazione su questi ultimi andranno in favore dell’assicurazione sanitaria. D’ora in poi inoltre ci sarà una sola base di calcolo sia per l’assicurazione sanitaria che per la previdenza sociale, il che secondo il Dott. Waterloos significa che si pagheranno più tasse per avere lo stesso servizio che in precedenza.
Transcript of Tax seminar 2013 physical persons
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
1
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Bart Waterloos
Income Tax of physical
persons 2013 Including self-employed persons and
changes to social and health insurance
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
2
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Quick overview of the most important changes
Repeating of changes past 2 years
Taxation of individuals
Dividends
Changes to the health and social contributions
Simulations
Questions and Answers
About VGD-AVOS
Table of contents
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
3
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Quick overview
Top tax changes for 2013
Introduction of progressive tax rate of 25% Limitation of lump-sum costs Limitation of tax-free amount Limitation of tax bonus Special rate for dividends from profits realised until 2003 No extension of deadline for filing the tax return
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
4
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Look back to the past
Changes over the last 2 years
Taxation of employment income Extension in the range of insured persons for social insurance Intended periodicity of the remuneration is prevailing over the type of the contract for social insurance Claw-back for social contributions on irregular remunerations
All benefits subject to social and health contributions:
Travel allowances
Redundancy payments or severance
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
5
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Subject to personal income tax are the following types of income:
Employment income (§5)
Entrepreneurial and rental income (§6)
Investment income (§7)
Other income (§8)
Taxation of individuals
Overview
Tax statement is due by 31 March, deadline can only be
extended with foreign income
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
6
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Taxation of individuals
Cancellation of the flat tax rate
19% will remain the base rate,
But a new tax rate of 25% being introduced:
For monthly tax base above 2.866,81 € or 34.401,72 € on a
yearly basis
In technical terms: for amounts exceeding 176,8-times the valid
life-minimum
A special 5% tax on Selected State Officials
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
7
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
The tax free amount :
Is calculated as 19,2 times the life-minimum valid per 1st of January
of the year (19,2 x 194,58 € = 3.735,94€)
Compared to 3.644,74 € for the year 2012
Tax payer can claim the entire tax free amount only if the yearly
taxable base is less than 100 times the life-minimum (i.e. less than
19.458 €; compared to 18.983 € for the year 2012
Usually managers and expats are above this limit and can thus not
enjoy the tax free amount at all (yearly taxable base is above
34.401,74 €, or 2.866,8 € monthly) (176,8 times the life-minimum)
Taxation of individuals
Determining the Tax Base
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
8
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Tax free amount (allowance) limited to ‘active income’, i.e.:
Employment income (§5)
Entrepreneurial or other income from self-employment (§6, 1°- 2°)
No longer applicable on “passive” income - e.g. rental income
Taxation of individuals
Determining the Tax Base
Tax free amount (allowance) for spouse, only if:
She is taking care of the kids till 3 years (6 if disabled), or
She is registered as self-employed, or
She is a disabled person herself
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
9
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Tax free amount (allowance) for pension savings
Compensation for lowering of the second pillar
Payments for pension savings up to 2% of tax base from active
income
Calculated maximum from 60-times the average salary
Taxation of individuals
Determining the Tax Base
Tax bonus for children:
Discount of 19,32 € per child per month
Condition: need income above 6-times the minimum salary
Only for ‘active’ income
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
10
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Taxation of individuals
Types of income: employment income
Consists of:
Gross salary
Bonuses
Fringe benefits
No changes in 2013
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
11
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Taxation of individuals
Types of income: entrepreneurial income
Taxable income:
Income from small business
Independent profit-making activities (self-employed)
Rent of real estate
Tax-free amount of 500 € for rental income
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
12
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Taxation of individuals
Types of income: entrepreneurial income
Authors’ revenues:
Different categories, with all effect on tax and health or social
contributions
Income for contributions to magazines, newspapers, … can be
taxed via withholding tax, then no social and health contributions,
but also no lump-sum expenses, 19%
Lump-sum expenses:
40% remains
But yearly maximum of 5.040 €, or monthly 420 €
To be applied on a monthly basis
Lump-sum for small agricultural income
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
13
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Taxation of individuals
Types of income: investment income
Taxable income:
Interests
Winnings
Yields from additional pension and life insurance
Mostly there is a withholding tax, whereby this withholding tax is now considered final in many occasions
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
14
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Taxation of individuals
Types of income: other income
Taxable income:
Income from occasional activity
Income from the sale of real estate
Transfer of securities, options, shares
Monetary and non-monetary income provided to health care
provider or its employee/medical staff by explicitly selected
persons, no expenses can be applied
Lump-sum for small occasional agricultural income
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
15
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Taxation of individuals
Technical issue: allocation of tax to NGO’s
For individuals:
2% still available to donate
Unlike legal entities, no conditions and no gifts
Another 1% (3% in total) can be assigned by those volunteers
who worked for any NGO’s for free for 40 working hours a year –
applicable on tax period of 2012
Should the conditions be not met, penalty of 1% applies
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
16
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Dividends
Health insurance 2011-2012
Dividends are subject to health contributions
10% contribution is due by the individual receiving the profit
shares
on the amount exceeding the monthly minimum calculation base
Applicable on profits generated for accounting periods starting
after 1 January 2011
Includes also the liquidation balance
No obligation for company paying out the dividends
Combine with overall maximum annual calculation base
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
17
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Dividends
Health insurance 2013 onwards
Dividends are subject to health contributions
14% contribution is due by the individual receiving the profit
shares
Completely separate calculation base
Calculation base of 120 times the monthly average salary, or
thus cap of 94.320 EUR for 2013
The company paying out the dividends has to ‘withhold’ the
contribution
Valid on dividends paid out as from 2013 profits
Only for individuals subject to the Slovak health system
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
18
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Dividends
Profits from before 2004
Old dividends: if paid out until 2012
19% income tax
health insurance?
Old dividends: if paid out in 2013 only
15% income tax
NO health insurance contributions
Done via withholding tax
Decision GM to be taken in 2013
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
19
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Dividends
General overview
dividends Profit till
2003
2004-2010 2011-2012 2013-.....
Health
insurance
rate
Till 31-10-
2010
0% 0% 0% 0%
2011-2012 0%? 0% 10% 0%
2013 0% 0% 10% 14%
2014 0%? 0% 10% 14%
.... 0%? 0% 10% 14%
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
20
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Health and social insurance
Increased and unified calculation basis
There will be only one calculation basis for all insurances,
New amount will be:
3.930 EUR
Or five-times the monthly average salary from 2 years ago.
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
21
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Health and social insurance
Overview premiums 2012
Insurance Maximum
calculation base
% employee % employer
Health 2.307,50 € 4% 10%
Sickness 1.153,50 € 1,4% 1,4%
Pension 3.076,00 € 4% 14%
Invalidity 3.076,00 € 3% 3%
Unemployment 3.076,00 € 1% 1%
Accident no limit - 0,8%
Guarantee fund 1.153,50 € - 0,25%
Reserve fund 3.076,00 € - 4,75%
13,4% 35,20%
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
22
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Health and social insurance
Overview premiums 2013
Insurance Maximum
calculation base
% employee % employer
Health 3.930,00 € 4% 10%
Sickness 3.930,00 € 1,4% 1,4%
Pension 3.930,00 € 4% 14%
Invalidity 3.930,00 € 3% 3%
Unemployment 3.930,00 € 1% 1%
Accident no limit - 0,8%
Guarantee fund 3.930,00 € - 0,25%
Reserve fund 3.930,00 € - 4,75%
13,4% 35,20%
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
23
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Effect of changes
Simulation 1
Take a senior manager in an international company; earning currently 5.500 EUR gross a month,
This person will have currently net income of 4.161,50 EUR
Costs for the employer: 6.514,50 EUR
After the intended changes:
Her net income will drop with 259,50 EUR to 3.902 EUR
Costs for the company will increase with 381,4 EUR to 6.895,9
EUR
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
24
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Effect of changes
Simulation 2
Take a young professional working at a senior position; earning currently 2.600 EUR gross a month,
This person will have currently net income of 1.875,50 EUR
Costs for the employer: 3.467,50 EUR
After the intended changes:
His net income will drop with 22,50 EUR to 1.853 EUR
Costs for the company will increase with 47,65 EUR to 3.515,20
EUR
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
25
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Effect of changes
Simulation 3
SME company, IT sector, some employees, owner is physical person, also working as manager
Currently company is making profit of 200.000 EUR
Corporate income tax: 38.000 EUR
Net income owner: 154.000 EUR
After the intended changes:
Gross profit will drop to 190.000 EUR
Corporate income tax: 43.700 EUR
Net income company: 146.300 EUR
Net income owner: 133.095 EUR
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
26
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Health and social insurance
Extension to ‘dohodari’
Dohodari will be considered entirely as ‘employees’,
Therefor not only accident and guarantee insurance, but all types
of insurance
Contributions due by the employer and employee
Will be enjoying then also the benefits
Some exceptions,
students
Recipients of a pension
These categories still escape the sickness, unemployment and
health care insurance.
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
27
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Health and social insurance
Self-employed persons
Contributions will increase for them as well,
From currently 44,2% average salary of two years ago to 50%
Calculated from the tax base before deductions of social and
health insurance contributions
Further increases for those earning more than 1.200 € monthly
Negative impact also from the reduction in the lump-sum expenses
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
28
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Health and social insurance
Technical issues
Annual reconciliation
Changed the date till end of September
Done now by the health insurance
Changes to the first and second pension pillars
Transfer from the second pillar contributions to the first pillar
(from 9% to 4%)
Voluntary extra contributions are possible and are a tax benefit
(max. 2% from tax base, overall maximum of 943,20 EUR for
2013-
Calculation bases and percentages for the first pension pillar to
be changed yearly
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
29
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
Health and social insurance
Technical issues
Meal allowances
Increased per 1st of September 2012
Minimum amount is now 4,00 EUR for 5-12 hours trip
Thus mealticket should be min. 3,00 EUR
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
30
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36 Questions &
Answers
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
31
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
The VGD group
A professional organization of auditors, accountants, payroll, tax
consultants, legal and deal advisors;
30 Partners, 625+ Staff, 30 offices
Present in 10 Mid-European countries
Started in 1981, constantly growing;
Offering high quality services and integrated solutions in the Mid-
European region.
Member of Nexia International
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
32
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
VGD AVOS Slovakia
More than 10 years of experience in SK
Rapidly expanding and growing
Offices in Bratislava and Piestany
Focus on international clients and larger local SME’s
More than 60 staff members in accounting, tax, audit and payroll
administration
Foreign languages spoken: English, Dutch, German and French
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
33
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36
VGD AVOS office locations
THE SLOVAK REPUBLIC
Bratislava
Moskovská 13
811 08 Bratislava
tel: +421 2 5541 0624
fax: +421 2 5541 0631
www.vgd.eu
OTHER COUTRIES
Czech Republic Praha, Liberec, Olomouc
Belgium Brussels, Beringen, Brugge, Gent, Willebroek-Blaasveld, Antwerpen, Antwerpen
L.O., Kuume, Machelen, Dendermonde, Zele
Bulgaria Sofia
Germany Düsseldorf, Leipzig, Essen
Luxembourg Luxembourg
The Netherlands Tilburg, Oisterwijk
Hungary Budapest
Poland Warszawa
Russia Nizhny Novgorod
Piešťany
Námestie SNP 1476/4,
921 01 Piešťany
tel: +421 033 7767 321
Tel: +421 033 7743 895
www.vgd.eu
VGD main
colour pallet
88
89
91
0
106
101
180
214
168
34
VGD secondary
colour pallet
255
172
50
173
234
0
197
226
255
224
57
36 Thank you for
your attention
The material contained in this publication is provided for general information only. The application of the
information included in this publication will depend on specific circumstances. We recommend that readers
seek professional advice when dealing with any business or legal issues. The material does not represent, nor
replaces legal and tax advisory services. No liability is accepted for acts or omissions taken in reliance upon
the contents of this publication
