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):
| Item | No. | Formula | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 |
| 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.