The Draft Law on Amendments to the Law on Personal Income Tax introduced significant changes to the public, and the most important novelty is the definition of the so-called Lump Entrepreneur Independence Test, as well as the related set of tax breaks.
The Test, defined by the provisions of Article 15 of the Draft Law on Amendments to the Law on Personal Income Tax, contains a list of nine criteria by which it will be determined whether an entrepreneur earns self-employment income or individual income (ie, determines whether the entrepreneur is independent of the client or not).
The introduction of this element is no surprise, since the changes will affect the IT sector employees the most. These include the question of whether the contract of engagement of the entrepreneur contains elements such as defined working hours, entitlement to annual leave, equipment and work space, and will also consider the length of the engagement, the percentage of income the entrepreneur earns from one client (70% of the total income over a period of 12 months), whether the business principal organizes professional development, whether the originator clause prohibits the entrepreneur from working with other clients and other elements. If an entrepreneur meets the minimum of 5 out of 9 criteria, he/she will be considered to have failed the Independence test.
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