Public Business Support and Funding
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TAXATION
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34
54
INCOME TAXATION
The form of corporate entity of your company or organi-
zation will largely determine the company's income-tax
obligations. Some entity forms, including limited compa-
nies and cooperative societies, are independently liable to
pay income tax as taxpayers. Their receipts of income are
taxed as income attributable to the entity itself. Corporate
income tax rate is 20 %. If a limited company distributes
dividend to its shareholders, the shareholder-beneficiaries
will be taxed as provided by specific rules.
Profits are fully taxable as income of the owner sharehold-
er in the case of a self-employed professional individual, a
self-employed business entrepreneur or a general or limit-
ed partnership. The taxable income attributable to the op-
eration of the trade or business is divided between a capital
income portion and an earned income portion. Capital in-
come is assessed at a 30-percent rate (> €30,000/34%).
Earned income is assessed using a progressive scale.
Entrepreneur's income tax
Earned income is considered to include wage income and
the earned income portion of business income as well as
pension
and other taxable social benefits. In state and municipal
taxation, taxable income is determined separately based
on gross income and deductions therefrom. The taxes paid
for each type of earned income are defined as based on
taxable income and the tax rates and tax-like payments to
which it is subject.
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If you receive a wage or salary income from other
employers, they will declare your earnings to the Tax
Administration.
If your company pays you a wage, kilometer allowanc-
es or dividends, the company must pay taxes withheld
at source based on your tax card.
•
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At the end of the year, the company must declare the
paid wages to the Tax Administration in an annual
return.
The Tax Administration will send a pre-filled tax return
including the information of the above-mentioned and
other payers. Check the tax return and make changes,
if necessary.View entire presentation