Self-employed contributions 2023: how are the base and contribution determined?
Posted: Sun Dec 22, 2024 6:09 am
In a few months, the self-employed contribution system will change. We will no longer have to pay a fixed fee every month and we will have to be able to calculate our net income to know which section of the contribution table we are in.
If you have no idea how it works and what you have to do, don't worry. Keep reading and we'll explain everything to you.
New self-employed contributions from 2023
Paying contributions based on real income is a long-standing demand among the self-employed. So the government has taken action and created a system so that those who earn less pay less and those who earn more pay more.
Although singapore phone numbers list it sounds simple, in practice it is not so simple.
The new contribution model is based on the net income of the self-employed and will evolve into the final contribution model based on real income, which will be implemented in nine years.
Between 2023 and 2025, a 15-tier system will be gradually rolled out that will set the contribution bases and rates based on the self-employed person's net income.
These will be reflected in a table that the government will update annually together with the General State Budget.
The one planned for 2023 is this:
image1
As the government is aware that income can fluctuate, self-employed workers will be able to change their contribution based on their expected net income up to six times a year.
If you have no idea how it works and what you have to do, don't worry. Keep reading and we'll explain everything to you.
New self-employed contributions from 2023
Paying contributions based on real income is a long-standing demand among the self-employed. So the government has taken action and created a system so that those who earn less pay less and those who earn more pay more.
Although singapore phone numbers list it sounds simple, in practice it is not so simple.
The new contribution model is based on the net income of the self-employed and will evolve into the final contribution model based on real income, which will be implemented in nine years.
Between 2023 and 2025, a 15-tier system will be gradually rolled out that will set the contribution bases and rates based on the self-employed person's net income.
These will be reflected in a table that the government will update annually together with the General State Budget.
The one planned for 2023 is this:
image1
As the government is aware that income can fluctuate, self-employed workers will be able to change their contribution based on their expected net income up to six times a year.