Freelancers: What Will Change for Minimum Viable Income – What You Need to Know

The calculation method is changing minimum sane income for self-employed persons – it will be annual minimum wage.

This means that a person cannot be taxed lesshow minimum wagewhich amounts to 830 euros gross for 14 months. For example, last year a freelancer with 6 years of work experience was taxed at 10,920 euros. But the following year, when the binding of this element was founded, in fact, on increasing the minimum wagethese 830 euros will be taxed at the rate of 11,620 euros per year. This is the base from which the following allowances are calculated.

The bonuses are calculated either based on the age of the company or based on the employee's maximum salary, i.e. the highest salary the employee has, i.e. the employee cannot receive 15,000 euros, but the employer, the owner of the company, can have 6,000 euros in profit.

Total annual labor costs and industry turnover are also calculated.

From these four allowances, which are superimposed on the base salary, we obtain the change in the employee's maximum salary. Today this criterion is calculated additively at the beginning, now it moves to the end and goes comparatively. In essence, this is an algorithm that changes the entire process. It is assumed that in the new regime the minimum presumption will be significantly reduced.

The next part that changes is the turnover. In essence, the industry turnover and business turnover today are compared. If the enterprise's turnover is higher than the industry's turnover, a 5 percent surcharge is charged on the difference. Now the figures, the turnover of the industries, will be increased to reduce the difference, and therefore the amount imposed on the freelancer will be less.

From the author: In essence, the authorities want to close down small businesses by imposing exorbitant taxes on them. After all, even if your business is not going very well, you are still obliged to pay taxes, as if everything is fine with you… To the objection of the type “many of those who declare a small income are working “under the table””, one can cite the catchphrase that the commander of the crusaders sent against the Albigensians uttered before the storming of Béziers on July 22, 1209: «Kill everyonethe Lord will know his own”. For Kyriakos Mitsotakis, his own is big business…

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