• The Union of Self-Employed Workers has formally requested the Ministry of Economic Development to establish the professional income tax regime as a permanent fixture rather than a temporary experiment.
  • Introduced in 2019 as a pilot program, the tax regime is currently set to expire after a ten-year period.
  • The organization is also seeking an increase to the annual income limit for participants.
  • This move aims to provide long-term stability for independent workers who rely on this specific tax structure.

Quick Summary

The Union of Self-Employed Workers has appealed to the Ministry of Economic Development to secure the professional income tax regime as a permanent law. Currently operating as an experiment introduced in 2019, the system is slated to run for a decade. The union is advocating for the removal of the expiration date and a higher annual income cap for participants.

This initiative seeks to solidify the tax environment for independent contractors and freelancers. By making the regime permanent, the union hopes to eliminate uncertainty surrounding the future of the tax structure. The request underscores the importance of stable tax legislation for the growing self-employed demographic.

Background of the Tax Regime

The professional income tax was initially introduced in 2019 as an experimental measure. The regime was designed to simplify tax obligations for individuals working independently. According to the established framework, the experiment is scheduled to remain in effect for a total of ten years.

This experimental status implies that the system is subject to review and potential expiration unless legislative action is taken to extend or permanently adopt it. The current timeline places the conclusion of the experiment several years from the initial introduction date, creating a deadline for stakeholders.

The Union's Request

The Union of Self-Employed Workers has formally petitioned the Ministry of Economic Development. The primary objective of this request is to transition the tax regime from a temporary experiment to a permanent legislative standard.

In addition to establishing permanence, the union is advocating for an increase in the allowable annual income limit for those registered under the tax. This dual request aims to expand both the duration and the capacity of the tax regime for independent workers.

Implications for Workers

Securing a permanent tax regime would provide significant stability for the self-employed community. A permanent law removes the risk of the system dissolving after the ten-year experimental period. This stability is crucial for long-term financial planning and business growth for freelancers.

An increased annual income limit would allow successful independent workers to expand their earnings without immediately triggering a switch to a different, potentially more complex tax system. This change could encourage more individuals to join the formal economy through this specific tax mechanism.

Frequently Asked Questions

What is the current status of the professional income tax?

It is currently an experimental regime introduced in 2019 that is set to act for ten years.

Who requested changes to the tax regime?

The Union of Self-Employed Workers requested the Ministry of Economic Development to make the regime permanent and increase the income limit.