BUSINESS

Social security contributions to add to load for freelancers

PROKOPIS HATZINIKOLAOU

TAGS: Taxation, Finance

Changes in the way social security contributions are paid as of next year will increase the burden on freelance professionals.

In 2018 freelancers are set to see their incomes shrink further, as 46 percent will have to go toward the payment of contributions and taxes.

Next year, their contributions will be calculated on 85 percent of their gross revenues, while as of 2019 they will be based on 100 percent of their takings, further increasing the annual burden.

Curiously, from next year, freelancers will have two kinds of incomes, the taxable income and that on which contributions will be based: The former stems from the deduction of the previous year’s social security contributions, while the latter will be calculated on their gross revenues.

The constant increases in taxes and contributions have led to thousands of freelancers closing their books and seeking other forms of payment, as it is virtually impossible for them to survive on the money left after they have covered their obligations.

In some cases – mainly concerning those on lower incomes – the amounts that remain are only enough to cover rent and utility bills.
 

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