The General State Budget (GGB) brings disappointing news for sole proprietors. They include an increase in the minimum and maximum contribution base. From January 1, the contributions paid to the social security system will increase from 5 to 21 euros per month, depending on the base.

Most entrepreneurs, almost 2 million, will pay 8 euros more per month. Thus, the amount will be 294 euros instead of 286 euros. For sole proprietors on the maximum base, the monthly contribution will rise to 1.266 euros (+ 33 euros more than in 2021)

The standard minimum contribution base in 2022 will be €960.60 per month, up from the current €944.40, and the maximum base will increase from €4,070.10 to €4,139.4.

For corporate sole proprietors, the minimum contribution base will increase to €1,234.86 in 2022. The minimum contribution will be 377.87 euros, (76.2 euros more per year than in 2021).

What other changes should we expect?
Reduction from 15% to 10% of the minimum corporate tax rate for newly created companies
Reduction of the maximum amount that PEs can deduct from contributions to individual pension plans, from €2,000 to €1,500.
In addition, the current module tax system was extended until 2022, and it was decided to keep the late payment interest at 3.75%, which the Tax Agency applies to IEs when they do not pay on time.

Have you been affected by these changes?