If the total amount of sales reaches or exceeds 35 000 EUR in a calendar year, the company has to register within the VAT payers register. This must be done not later than 30 days after the threshold has been reached or exceeded. This rule applies to companies who sell online as well.
Registration process, after submitting the applications and other required documents to the Tax authority, takes from 5 to 7 working days.
A corporate income tax (CIT) is paid when profit or deemed dividends are distributed. The tax rate is 20% and is calculated as 0,25 from the net dividend or distribution.
Mandatory social security contributions are split by the employer’s rate and employees rate, respectively - 24,09% and 11% (in 2019). Employer’s costs would be EUR 2481.80 (gross salary + 481, 80 (employer’s rate)).
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