The contractual work tax applies to all registered legal persons and individuals who perform a business activity and employ other persons under contract for temporary work. This tax is levied on gross payments made to individuals performing temporary contractual work, at a rate of 25%. Payments for certain types of contractual work are exempt. The taxable base also includes all refunds of expenses in connection with services performed.
There are a number of exemptions from the contractual work tax. These include:
- Payments for temporary services performed by students or pupils;
- Payments for services performed for the help and care of disabled people;
- Payments for certain defined services performed periodically in the area of agriculture;
- Payments for the use of copyrights made under a copyright contract