7 + 1 Tip: This would save Catalan entrepreneurs

At BKIK, 6,000 entrepreneurs from the capital were asked about the planned modification and possible solution methods. One of the most significant anomalies related to the type of tax is that while in 2013 the kata tax rate corresponded to approximately 80% of the tax burden paid on the minimum wage at that time, meanwhile, the minimum wage and its burden tax almost doubled, the ceiling of 6 million HUF also doubled to 12 million. but the kata tax rate, which also includes TB charges, has not changed, writes BKIK in its statement.

BKIK research shows that almost half of entrepreneurs can imagine some increase in tax burden in exchange for keeping regulation simplicity, while roughly a third see the solution in administration complexity in addition to the remaining tax burden. .

Although the value of actual earnings as an employee is included in the pension fund, the calculation of the kata pension does not take into account the actual earnings, but the amount determined by law on the basis of the fixed monthly tax. This means a pension fund of 98,100 HUF for full-time taxpayers of 50,000 HUF per month, which in 2013 was still close to the minimum wage then, but is now only 61% of 161,000 HUF. The Government tried to compensate for this by introducing a flat tax of HUF 75,000.

They summarized their claims in 7 + 1 points

Let’s restore the appreciation of the cat who follows the rules!

Recently, opinions have emerged that would brand feline entrepreneurs as tax evaders. The BKIK vigorously rejects this approach, as it is precisely the task of separating those who use the tax regularly from those who use kata illegally for the originally declared purposes, and for the authorities to take action only against those who use the tax in such a way! irregular! According to the available data, there are a majority of habitual catastigers whose stigma and punishment are socially unjust and economically damaging.

Confirm the check!

In order to eliminate catastrophic irregularities, NAV should be provided with additional budgetary resources so that it can effectively use the tools at its disposal, such as analyzing incoming account traffic online.

Let’s harmonize kata in the labor income system to make it sustainable in a lasting way!

Entrepreneurs who choose the tax type often use their own work and knowledge to generate income, while using little capital costs to do so, thus the kata essentially replaces the public charge of wage income. Among these, a significant item is social security contributions, while for kata it is much less. This, on the one hand, creates great motivation to divert kata income to the present through the availability of much higher net income and, on the other hand, high social tensions are expected in the future due to low insurance entitlements social, as many cats do not make self-sufficient savings in addition to tuberculosis. Therefore, it is advisable to approach the TB system and tax relief for the employment relationship.

Keep the current tax burden up to 5 million HUF in revenue, introduce a new tax rate of 15% on top of that, but there should be more TB legal relationships for the extra payment!

Last year, 44 percent of kata entrepreneurs earned less than HUF 4 million and 52 percent less than HUF 5 million. With regard to smaller entrepreneurs, who account for more than half of catastrophes, according to point 3, the kata tax rate should be the current tax burden up to HUF 5 million and 15% of previous income, with a part-time cat contractor, a minimum of HUF 25,000 per month.

Full-time taxpayers who pay the tax above the monthly minimum must have a legal TB relationship, either proportionally or at a flat rate, while those who choose the monthly minimum of HUF 75,000 must continue to have a legal TB relationship that corresponds roughly to the minimum wage. In the longer term, the proposed solution may be to obtain a higher legal TB ratio so that full-time employees can choose a higher contribution amount. For part-time taxpayers paying above the monthly minimum, the amount above the minimum must be included in TB’s legal relationship in some way, either pro rata or in a flat fee. BKIK also considers an alternative to three different flat tax rates, such as 12.5 percent, 15 percent, and 17.5 percent, for three different flat tax rates.

Get a family discount for full-time cats too!

A family allowance can also be used for earned income subject to personal income tax. For the sake of harmonization, the logic for this should be extended to full-time cats. Due to the more favorable tax rate for kata, according to BKIK’s proposal, a family discount of at least HUF 5,000 per month for one child, HUF 10,000 per month for two children and HUF 25,000 per month for 3 kids.

Zero tolerance for hidden employment!

BKIK agrees with the Government’s position that the transfer of employment to a kata company is a socially very damaging process, so it is advisable to introduce a new rule to stop and reduce it: a special 40% tax on any amount contractual for two years, where the former employee enters into a contract with his former employer or his affiliated company! So for two years this practically means that you are still an employee of your old company, but you can enjoy the benefits of kata under your other contracts.

Instead of two, the choice of the kata of the week must be linked to three conditions

Currently, of the seven conditions, it is sufficient that the kata entrepreneur meets two. At the same time, decent cats can meet three or even four conditions without any problem.

We withdraw the 3 million guilder rule known as “Lex Parragh”!

The recently adopted excise tax of more than 3 million HUF on a customer’s income is subject to a 40% excise tax, in addition to the fault of many small businesses, which is extremely difficult to filter out. However, the rule can be circumvented, as experience has shown that, for example, some accounting firms already specialize in how to distribute their clients’ income among the firms they register. The introduction of the proposals made in the previous points addresses the problems identified in relation to kata, so it is proposed to abolish this rule – writes BKIK in his proposal.

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