I lately realized that if taxes are paid on an quantity that’s lower than the minimal wage established within the nation, the years labored usually are not taken into consideration within the insurance coverage interval, and they’ll additionally not be taken into consideration when calculating a pension. Is that this actually true? bb.lv reader”
Vita Cinite, senior professional of the division of methodological steerage on advantages of the State Social Insurance coverage Company (VSAA):
– An individual working within the standing of a self-employed particular person can select one in all two taxation regimes: as a self-employed particular person paying necessary state social insurance coverage contributions (hereinfollowing known as VSAOI) within the common taxation process, or as a self-employed particular person paying VSAOI within the microenterprise tax regime (MET) .
The insurance coverage interval is shaped from the durations throughout which insurance coverage premiums had been paid – on this case, when an individual, working as a self-employed particular person, pays VSAOI contributions. Necessary state social insurance coverage contributions should be paid whatever the chosen taxation regime and the quantity of earnings.
If the final taxation process is chosen, the quantity of VSAOI is set relying on the quantity of earnings in a calendar month.
In flip, a self-employed one that contributes VSAOI as a micro-enterprise tax payer pays IMP from turnover (i.e. gross earnings) on the premise of a quarterly declaration – within the quantity of 25% of IME turnover. Of this tax, 80% is VSAOI and 20% is private earnings tax.
For a self-employed particular person whose earnings in any month was lower than the nationwide minimal wage (in 2024 this quantity is 700 euros), VSAOI should be paid on precise earnings within the quantity of 10% for pension insurance coverage.
For a self-employed particular person whose month-to-month earnings reaches or exceeds the minimal wage established within the state, the VSAOI cost should be made within the quantity of 31.07% of the chosen contribution object, which can’t be lower than the minimal month-to-month wage. This charge contains pension insurance coverage, in addition to maternity, sickness (in case of non permanent incapacity), incapacity, parental and medical insurance. As well as, it’s essential to contribute a further 10% of the distinction between the precise earnings of a self-employed particular person and the article of necessary social insurance coverage contributions chosen by him to VSAOI for pension insurance coverage.
Payers of micro-enterprise tax throughout the which means of the Regulation “On State Social Insurance coverage” are thought-regarding self-employed. In response to the calculated VSAOI quantity, VSAA calculates the VSAOI object by considering 80% of the micro-enterprise tax and making use of the self-employed VSAOI charge (31.07%). That’s, for the IMT payer, the social insurance coverage system in keeping with VSAOI is registered in full as for the self-employed (31.07%), whatever the precise dimension of the MPN turnover.
Thus, whatever the chosen taxation regime and the quantity of earnings, a self-employed particular person is topic to social insurance coverage, together with pension insurance coverage. A self-employed particular person is taken into account socially insured provided that he really pays VSAOI. The durations throughout which pension insurance coverage contributions are paid are included within the insurance coverage interval for the old-age pension.
Necessary level: If a self-employed particular person receives earnings from mental property (royalties), then the recipient of the royalties will not be essentially a socially insured particular person (might not contribute VSAOI) if he has reached the age entitling him to obtain a state old-age pension, or if he has been granted state age pension (together with early), or if he’s an individual with incapacity group I or II.
Sadly, the reader’s query doesn’t present particulars that would considerably have an effect on the scenario in her explicit case. Specifically, it’s unknown what kind of financial exercise she carries out, in what tax regime she pays taxes, working as a self-employed particular person, whether or not she has any incapacity group, and so on.
Subsequently, to acquire complete data on her particular situation, she ought to contact a VSAA department handy for her.
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2024-05-31 01:06:44
