New Rules for the Calculation of Salary and Contributions of the Entrepreneurs Who Pay Taxable Profit Liabilities and Entrepreneurs Who Pay Lump-Sum Taxes Starting From January 1, 2022
Starting from the advance payment for January 2022 that falls due on February 17, 2022, the monthly base for the calculation of contributions for the entrepreneurs who pay taxable profit liabilities cannot be lower than the newly determined lowest contribution base of 38,880 dinars or higher that the newly determined highest contribution base of 441,140 dinars.
– Modified Calculation of Entrepreneur Salary
PDI contribution rate of the entrepreneurs who have chosen to pay salary in 2022, starting from January 1, 2022, has been reduced from 25,5% to 25%. Starting from January 1, 2022, the reduction in taxes payed on all salary payments in 2022, starting from the January salary, and other 2021, 2020, 2019 and 2018 salaries equals 19,300 dinars on a monthly basis. The reduction in taxes on all the listed salaries to be paid by December 31, 2021 equals 18,300 dinars on a monthly basis.
The provisions on the minimum wage do not apply to the entrepreneur salary.
The choice to pay salary can be accepted only in terms of entrepreneurs and farmer-entrepreneurs, while other entrepreneurs and entrepreneurs who pay lump-sum taxes cannot pay salaries.
– The Salary of an Entrepreneur Who Is Not Insured on Other Basis
The new lowest monthly base for the social contribution calculation equals 30,880 dinars, while the highest monthly base equals 441,140 dinars and applies to all payments starting from January 1, 2022, regardless of the month for which the salary is payed.
The following monthly contributions are payed for the entrepreneur who is not insured on other basis:
Salary tax – 10%
PDI contributions – 25%
Health insurance contributions – 10.30%
Unemployment insurance contributions – 0.75%
– The Salary of an Entrepreneur Who Is Insured on Other Basis
When paying a salary starting from January 1, 2022, the following contributions are payed to the monthly earnings of an entrepreneur who is employed by another employer or retired:
Salary tax – 10%
PDI contributions – 25%
According to the Article 52a Paragraph 2 of the Law on Mandatory Social Insurance Contributions, the entrepreneurs who do not pay the salary for the December 2021 by the end of January 2022 shall no later than January 31, 2022 calculate and pay the contributions to the lowest base valid at the moment of payment i.e. to the base in the amount of 30,880 dinars, applying the new PDI contribution rate of 25% if they are insured on other basis i.e. 36.05% in total if they are not insured on other basis.
Modified Calculation for the Entrepreneurs Who Pay Taxable Profit Liabilities
The entrepreneurs who are obliged to pay PDI contributions will calculate and pay PDI contributions at the 25.5% rate when determining the final liability for the year 2021 and at the rate of 25% when determining advance payments for the year 2022.
The entrepreneurs who established their business while they were employed or retired shall determine in the tax return only a PDI contribution to advance payment, while the entrepreneurs who are not insured on other basis shall determine health and unemployment insurance contributions to the advance. When submitting the PPDG-1S tax return form in order to determine the final liability for the year 2021, the entrepreneurs will also determine the amount of advance payment for the year 2022, while the PDI contributions will be determined at the 25% rate.
Determining Tax Liability for the Entrepreneurs Who Pay Lump-Sum Tax
Since the delivery of electronic tax report is expected by the end of January 2022, the entrepreneurs who pay lump-sum tax will pay the amounts determined in those reports, starting from the advance payment for January 2022. PDI for December 2021 is payed at the 25.5% rate but starting from the advance payment for January 2022, PDI is payed at the 25% rate.