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Calculation of contributions and a special tax on earnings generated from a mandate agreement

2014-02

In accordance with the DURS interpretation of 24 February 2014, earnings for completed work or for services under a mandate agreement are considered earnings for work derived from another legal relationship, based on which an insurance obligation is assessed under Article 18 of the new Pension and Disability Insurance Act (ZPIZ-2), Article 17, item 5 of the Health Care and Health Insurance Act (ZZVZZ) and Article 55a first paragraph, indent one of the ZZVZZ. Therefore, with regard to the obligation to pay of contributions on these bases, the same rules apply to payments under a mandate agreement as with payments relating to work contracts.

Payment to natural persons based on a concluded mandate agreement is subject to a special tax on specific earnings, if it does not involve a service rendered within the scope of performing an independent activity or services that are explicitly exempt from the payment of this tax in accordance with the Contractual Work Tax Act.

Authors

Picture of Sasa Sodja
Saša Sodja
Attorney-at-Law
Ljubljana