
Thousands of free professionals are facing a real fiscal massacre these days, as tax bills are arriving at their addresses, which go up to 30 percent of the turnover .
The Tax Administration has started to notify thousands of small self-employed businesses of the estimates for prepayment of profit tax for the year 2024, based on the turnover they have realized for the previous year. Capital consulted notice the estimates arrived at dozens of free professionals. According to the announcements, it turns out that for the vast majority of professionals, the profit tax goes up to 30 percent of the turnover.
"Now the only solution I have left is to suspend the activity because the obligation that has come to me is unaffordable," a freelancer told Kapital.
Legal violation
The law on income tax states that businesses classified as free professions pay profit tax at the rate of 15 percent, when they have an annual turnover of less than 14 million ALL and 23 percent for the band above this turnover. But in reality, according to the estimates that went to the businesses, the obligation calculated by the administration goes up to 30 percent of the turnover.
In addition to the tax that has been calculated for freelancers, the tax administration does not even recognize the legal relief, which gives freelancers the right to deduct 30 percent of turnover as recognized expenses. Faced with numerous complaints from self-employed businesses for arbitrary tax calculations, the tax administration justifies that the assessment is automatically generated by the system.
But despite the excuses, the fact is this. Taxes are forcing freelancers to pay a tax rate more than twice as heavy as large corporations. If for large businesses that turn over and earn millions of euros a year, the profit tax is 15 percent, for freelancers the tax administration is charging up to 30 percent of the turnover. A real regressive tax system, according to the principle "who earns less, pays more."
When he came to power, Edi Rama widely propagated the so-called honest taxation. In every public appearance, the prime minister declared that his government had finally freed the tax system from injustice by establishing the principle "who earns more, pays more". But now the prime minister's principle has been turned upside down and the tax administration is taxing small businesses of free professions, twice as much as the oligarch friends of the prime minister./Capitali
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