When does the obligation to pay contributions arise for Self-Employed Persons (SEPs - SZČO)

Do you have income from your business or another self-employment? Do you have to register with the Social Insurance Agency? The start of self-employment does not mean you immediately have to pay social insurance contributions. This obligation may arise at the earliest after you submit your declaration on tax return, when your income exceeds the statutory income threshold for a specific year.

Do I need to register with the Social Insurance Agency as a SEP/SZČO?

No, you do not have to inform the Social Insurance Agency of the start of your gainful activity. The competent Trade Licensing Office will notify the Social Insurance Agency of the start of business activity directly. If you are a SEP/SZČO pursuing gainful activity on the basis of a concession, you also don’t need to notify the start of the concession. The competent institutions that granted the concession will notify the Social Insurance Agency.

How to proceed after filing a declaration on tax return?

1

Check your income levels from trading

and other self-employment in the last calendar year.

2

If the amount of your income exceeds the statutory threshold

determining the start of compulsory insurance (in 2023, the threshold from earnings in 2022 is EUR 7 266), you are obliged to pay contributions:

  • from 1 July of the following calendar year; or
  • from 1 October of the following calendar year if you had an extended deadline for filing the tax return.
3

The Social Insurance Agency will notify you within 20 days (in July or October) of:

  • the start (or end) of compulsory insurance;
  • your assessment basis or its change;
  • the amount of the contribution;
  • the time limits for payment of contributions;
  • details for the payment of contributions (specific symbol, variable symbol).
4

You start paying contributions,

you have no other obligations.

 

 

What if I pay contributions, but I have lower earnings in the following year?

If you are compulsorily insured and in the following tax year you have annual income below or equal to the statutory threshold, compulsory insurance commences for you at 30 June of the following calendar year (or 30 September if you had an extended deadline for filing the tax return). The Social Insurance Agency will notify you when compulsory insurance ceases within a 20-day period.

Find out more about paying contributions in the section: Paying Contributions – SEPs/SZČO.