The business income tax rate of an entrepreneur account holder who has joined the second pension pillar will only increase by the rate of their funded pension contribution. “For people who have chosen the funded pension contribution rate of 2%, 4% or 6%, the business income tax rate will be 22%, 24% or 26% respectively. For those entrepreneur account holders who have not joined the second pillar, the business income tax rate will be 20%,” explained Riina Randver-Sõer, the Service Owner of the Income Tax Department of the ETCB.
If the income received in the entrepreneur account is a person’s only income, then to obtain health insurance, their entrepreneur account must receive 2255 euros in one calendar month.
Until now, it was possible to check whether a person had an entrepreneur account or not through the public search of entrepreneur accounts. Now, you can also check whether a specific entrepreneur account belongs to a specific person or not.
The entrepreneur account is a bureaucracy-free and affordable opportunity for natural persons to act as entrepreneurs. There is no need to worry about financial statements, monthly tax returns and paying taxes. All of this is done automatically based on the entries in the entrepreneur account.
“An entrepreneur account is intended primarily for people who provide services to other natural persons that do not involve direct costs. It is also a good opportunity to earn additional income for those who provide services and sell goods that are self-made or have low material or acquisition costs to people or companies,” said Riina Randver-Sõer.
For example, the entrepreneur account is suitable for babysitters, pet sitters, domestic helpers, gardeners, and those who provide repair or construction work that does not involve direct costs or whose work costs are borne by the customer. It is also well suited for craft and art makers, sellers of home-grown or home-prepared food, seedlings, plants, or other similar items. You can find more options and examples of how the entrepreneur account works on the ETCB’s website.
