I've been checking around, and having trouble finding it explicitly stated: do taxes and pension fees simply stack if you're self-employed?
So, assuming my rough-estimate taxes (municipal come to about 25% and pension fees to be about 23% (which isn't exactly right, but close enough for my purposes) I would only get about half my profits in hand?
Is my understanding correct, or am I missing something? Are some of my numbers ludicrously off?
Taxes plus pension fees?
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betelgeuse
- Posts: 4571
- Joined: Thu Aug 29, 2013 1:24 am
Re: Taxes plus pension fees?
General rule for self-employed invoicing 100 euros:
1. pay the included value added tax (about 20 euros) to the state
2. pay pension feeds. For self employed the fees are based on the income level agreed with you and the pension insurance company.
3. deduct costs
4. for the profit you pay income tax or capital tax (depending on how you select to do it)
You are correct in that you should expect to see less than half of the money for your own consumption.
1. pay the included value added tax (about 20 euros) to the state
2. pay pension feeds. For self employed the fees are based on the income level agreed with you and the pension insurance company.
3. deduct costs
4. for the profit you pay income tax or capital tax (depending on how you select to do it)
You are correct in that you should expect to see less than half of the money for your own consumption.