Tax shift for the self-employed

At present, a legislative proposal is being examined with the aim of lowering social security contributions for the self-employed.
The benefit is that the social security contributions for the self-employed would be lowered as from 2016. The reduction would be 0.5% per year and would represent a 1.5% reduction in 2018.

As from 2016, 22% of the income of a self-employed person in the definitive system (after three years in business) will be reduced to 21.5% (as for a self-employed person in their third year of work).
From 1 January 2017, the percentage will be 21%.
In 2018 there will only be a single percentage for everyone: 20.50% for self-employed people with an income of less than € 55,576.94.

For the portion of the income exceeding € 55,576.94, the self-employed person will still pay 14.16%.So self-employed people will see their social security contributions fall and their purchasing power rise.

EXAMPLES:

• Net taxable income = € 10,000 > reduction of € 50 in 2016, € 100 in 2017 and € 150 in 2018
• Net taxable income = € 40,000 > reduction of € 200 in 2016, € 400 in 2017 and € 600 in 2018

Author:

14/12/2015