Taxation of an entrepreneur
(Bara på engelska / Vain englanniksi)
I did my tax return today. I’m a starting-up entrepreneur, and my company hasn’t been able to pay me much salary. My taxable work income is zero, null, nil. I’ve paid more than 300 euros tax on the only monthly salary I paid myself in 2006. Now I owe the tax office more than 600 euros more. It’s the medical insurance that the government takes care of to finance the public health system. This makes my tax percentage 70.4 % of my gross annual salary. The system calculates the fee from the pension level. The odd thing is, that my tax percentage would go down drastically if I’d be able to pay myself more salary. This would never happen to a person who is employed by someone else!
The good thing is that the tax officials have, for once, approved my advance payments on the capital income side. I need to file a complaint for 2005, because they neglected my advance payment last year. That made my capital income tax rise to 56 %.
