Taxation of profit and profit payout to physical persons (owner of limited liability companies) has changed in 2012. Tax burden depends on:
– corporate tax rate and
– personal income tax rate.
We have calculated a simple case below (amounts are in EUR):
|Profit before tax||1||10.000||10.000||10.000||10.000||10.000||10.000|
|Corporate tax rate||2||20||18||17||16||15||15|
|Corporate tax||3||3 = 1*2/100||2.000||1.800||1.700||1.600||1.500||1.500|
|Profit after tax||4||4 = 1 – 3||8.000||8.200||8.300||8.400||8.500||8.500|
|Taxable personal income||5||5 = 4||8.000||8.200||8.300||8.400||8.500||8.500|
|Personal income tax rate||6||20||20||25||25||25||25|
|Personal income tax||7||7 = 5*6/100||1.600||1.640||2.075||2.100||2.125||2.125|
|Net payment to the owner||8||8 = 5 – 7||6.400||6.560||6.225||6.300||6.375||6.375|
|Total tax burden in %||9||9 = (7+3)/1*100||36,00||34,40||37,75||37,00||36,25||36,25|
Total relative taxation of profit in 2011 is 36%, in case owner decides to disburse total profit.
In 2012, total tax burden decreases to 34,4%, due to lower corporate tax rate. From 1.1.2013 on, personal income tax rate (only for dividends) is 25% (instead of 20%). Consequently, in 2013 total tax burden increases to 37,75% and is then lowered each year until 2015, when it reaches 36,25%, again due to lowering of corporate tax rate.
Changes are important when deciding on a time frame of profit payout. Numbers in table above are simplified. Before making a decision, it is recommendable to consult an expert. If you call us on +386 8 2055 950, we will be glad to help you make a decision, optimal to your taxation costs.