CURRENT: Matovič planted a blow to self-employed people, his reform can cost them a lot of money – Startitup

Igor Matovič continues to present the “tax revolution” in which he worked in the position of Minister of Finance. He announced a press conference today, which will focus on the taxation of sole traders and the restaurant package. This is the fourth press conference in a row that focuses on the revolution from his workshop.

Today, Igor Matovič thanked all the self-employed. He says that he himself was one and that is why he is very close to the topic. He claims that this is why he is a legitimate person who should show the public what system should work in the future.

“I admire people who, as self-employed people, legally pay all their taxes and do not circumvent their obligations,” says Finance Minister Igor Matovic.

On average, a self-employed person pays four times less than a regular employee. On average, one employee pays the state for the running of the state at 8,000 euros per year of his total work, self-employed persons or SZČO pay 2,000 euros. “What follows is that those who fund this state are employees.”

Igor Matovic called the same job, the same job. According to the head of the finance department, different tax wedges apply to different forms of business. However, a person who remains an employee and who, according to Igor Matovič, realizes that the state must live on something, gets the least. In this case, the tax wedge is the highest, 42.8%.

According to Matovič, the employee pays seven times more in taxes than any entrepreneur, just because everyone is “employed” in a different way. The employer costs the same and their gross salary is equal.

After the reform, SZČO would pay about a quarter lower levies than employees. They would be lower because the self-employed people really stand on their own two feet, says Matovič, and they guarantee their entire property for their business.

Employees would have levies 39%, self-employed 29%. However, those who apply flat-rate costs would not be able to do so after the reform. People who have nothing to add to the cost would pay a 29% withholding tax, it would be a tax and levies together.

The flat tax would be at the level of 29%, so everyone will be able to do business, says Matovič. According to him, this is a dream for a new entrepreneur. Self-employed persons would only register in the state application and could do business.

Through the application, they would receive payments and also pay a flat tax. They would not have to go anywhere, especially to register, only to manage finances through the application. The application would not require any accounting, everything that the state requires would be included in the tax. No financial report checks would be waiting for you.

“I believe we can realize that this state must work out of something. A self-employed person also needs a nursery, hospitals, police, courts. Therefore, the whole burden of the state cannot be on employees alone. “ says Igor Matovic.

“I see no reason for someone who knocks on a laptop to pay much higher taxes than a person who goes to Volkswagen at night,” Matovic says that taxes for self-employed people are ridiculous.

“I have the support of For the People and We Are the Family, but I am afraid that someone will try to catch this part of the reform populistly,“If that happens, Matovič promises to reduce collective taxes for everyone. Although there will be millions missing in the state treasury, he would be able to look the employees in the eye.

Tringelt cancellation will also be possible. If you are not satisfied with the restaurant, you can safely say that you did not like it and therefore you do not want to contribute to them. Matovič insists that it would be embarrassing for people to go to the same company every day and always claim that they did not like it.

Restaurant package changes

The second topic addressed by the Minister of Finance was the restaurant package of changes. This is about taxing restaurants or services, explains Matovič.

Today, the bill, which would amount to 120 euros, is divided into two parts. Without VAT, it would be 100 euros. If there was € 120 in the receipt, € 20 would be tax. If we take into account that an ordinary Slovak gives 5% tingelt, he would ultimately pay € 126.

The price of food without VAT would in the second case, after the tax revolution, be the same, 100 euros, VAT would be 10%, and thus 10.9 € and the remaining 9 € would be tringelt. Matovič thus wants to legalize tringelts and thus give them to employees in a clean way, which would make them taxable.

Matovič requires conditions for these changes – he really wants to pay half the amount for the children’s menu. A half portion should cost half the price. However, he adds that this does not apply to fast food, for example.

Restaurants and EKO menus for adults should be on offer. In this case, it would also be half a portion, for people who are not so hungry, but the EKO menu would cost three quarters of the full amount.

Matovič also wants to introduce that a mug of clean water is automatically served with each meal. So that one does not “order a sweet rib”, because it is currently the cheapest.

The first part of the reform

The first part of the reform, which the Minister of Finance presented on Sunday, November 14, consisted of greater support for families. Families with at least one parent should receive € 200 for each dependent child after the tax reform.

Today, the monthly child allowance is at the level of 25.5 euros and the head of the finance department wants to increase it to 30 euros. For children who are adults but still studying, the state would pay 50 euros a month until they graduated from college.

Another 70 euros would be given to children for services such as clubs, tutoring, galleries and gyms.

He also wants to increase the tax bonus, from the current 23 euros to 46 euros and in the case of a child under 18 to 70 euros.

The fourth measure is a recreational bonus for the child of working parents. This represents 30 euros per month per child. Igor Matovic also opened the topic of the so-called millionaire tax.

The second part of the reform

Monday 15.11. Igor Matovič presented the second part of the tax reform, it concerned labor taxation. According to the reform, employees and employers should pay only one insurance contribution and one tax, while removing all the exceptions that currently form a complicated system.

Employees would only pay income tax of 19% of gross wages, with employers only paying 39% of gross wages.

Employees who have lower incomes would be entitled to an employee bonus. This would amount to a maximum of 100 euros. Employers would be entitled to a contribution bonus if they employed a student or a person with a disability.

The third part of the reform

Tuesday 16.11. Igor Matovic presented the third part of the reform. This concerned corporate taxation. The corporate income tax rate would be reduced from 21% to 19%.

“Flexible depreciation” of assets for productive investments would also be introduced. The company will thus be able to additionally reduce the tax base by 50 percent by arbitrarily accelerating the depreciation of productive assets, writes SITA.

After the reform, a measure, the so-called group taxation for companies of the same owners, would also work.

The Ministry of Finance wants to cover the costs of these changes by increasing dividend taxes from 7% to 9%, or by increasing taxes on banks and oligopolies or monopolies, respectively.

Expert opinions

The topic for Startitup was also discussed in detail by experts. Economist Radovan Ďurana from INESS revealed which point from the third part of the reform does not sound revolutionary at all.

Economist Radovan Ďurana explained why child allowances cannot be targeted in the way Matovič came up with. Eximinster Jozef Mihal thinks one of the proposals is a trap for SaS: “To Richard Sulík get up and start protesting,” claims. You will also find out how you are calculate salary after the new.

We are updating the article.

Source: SITA