The SRS recalls: Accountable taxpayers are obliged to pay the social tax

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With the tax reform, several changes have also occurred this year with respect to royalties. The main changes relate to the fact that the recipient of the royalties must make mandatory contributions as a self-employed worker even if he is a worker and that his compulsory contributions to one or more employers come from professional earnings of which the total monthly amount is less than 430 According to the State Revenue Service (SRS)

this year, all recipients of royalties whose income is at least 430 euros per month and who do not work during that month (with a salary of At least 430 euros) must register with the self-employed. state. These persons must pay a compulsory contribution of 32.15% by 16 July at the latest from the freely chosen part of the royalties collected, but not less than 430 euros. The recipient of the fee can register as a freelancer in any SRS customer service center, submit an ID or submit an application electronically by signing it with a secure electronic signature. To determine if royalties are at least 430 euros per month, the royalties deducted from the contract must be deducted from the work creation costs, which are set at 25% or 50% depending on the type of charges. 39; operation2. If the work of the author is carried out as part of the labor relations or if the use of the material and technical resources of the employer (premises, equipment, etc.) is used for the work. Execution of the work, the fee rate does not apply to royalty revenues. Euro, of which 25% is deductible, ie 150 euros. As the royalty income is 450 euros and that the author receives it in July 2018, July 10, 2018, the author must register the SRS as an independent and no later than July 16 2018, a compulsory contribution of 32.15% of at least 430 euros, that is to say 138.25 EUR.

Contributions to the state budget must be made once a quarter – until April 16, 2018, July 16, October 15, and January 15, 2019. Each quarter before these dates, the The recipient of the royalties must also submit to the SRS a report on the mandatory contributions of the self-employed for the quarter in question.

The report can be sent: by the SRS electronic declaration system (EDS), electronically, send the message to the corresponding e-mail address of the SRS Customer Service Center by sending a message to the 39, address of the SRS Administration in Riga, Talejas Street 1, LV-1978.

The form "Report on mandatory contributions of the self-employed" is available on the home page. / Authority

In order to ensure the social protection of workers specified in the regulatory texts and to promote the fair discharge of tax obligations, the SRS also invites payers of royalties (legal entities) to inform their employees – self ( natural persons) for changes in the payment of royalties.

As before, the recipient of royalties has the right not to make compulsory contributions to the fee if he has a disability of group I or II, or if he has reached the age In addition, we also inform you that even if the income of one month paid does not reach 430 euros, the recipient of the fee may voluntarily register as an independent and pay a compulsory contribution.

More information Taxes / Personal income tax / Information and methodological material in the methodological material "Taxation of income from works protected by copyright" available on the mandatory contributions to be made.

In the case of the SRS, we invite you to call the support number 67120000, to consult on the spot in any SRS customer service center or to ask your question in the "Contact" section. from the SRS home page