What does the YEL reform mean for entrepreneurs?
If the legislative reform goes ahead as planned, you will be able to choose whether your YEL contributions are based on your actual taxable earned income or on an overall assessment, as under the current system.
In the overall assessment model, your YEL income would be determined the same way as before, but it should be at least 50 per cent of the income earned from your entrepreneurial activities.
In the income model, your income would be determined based on the taxable earned income from your business activities, in accordance with your most recently finalised tax assessment.
The reform is expected to enter into force on 1 January 2028. In 2027, YEL income will still be subject to the current legislation.
Read more in our article: YEL reform advances to consultation round
