Do you have a payroll?

Payroll tax corresponds to VAT and is often termed the tax that is imposed on profits from the sale of VAT-free goods. However, you can have some goods or services subject to VAT, while some that are not subject to VAT. It is, therefore, a good idea to review your activities with Vistas Revisor prior to the first reporting of VAT/payroll.

Calculation of payroll tax

Payroll tax is calculated based on the company’s payroll + any profits. However, there are differences in the rate used to calculate payroll tax, depending on the business activity and the business form.

Businesses that do not have any staff may also be required to pay payroll tax. In such cases, payroll tax is calculated on the total profit for the owner.

The following activities are taxable as payroll:

  • Health care (e.g. doctors, dentists, chiropractors, physical therapists and hospitals)
  • Teaching
  • Sports clubs
  • Cultural organisations (excluding museums, libraries, etc.)
  • Management of real estate
  • Insurance underwriting
  • Banks, savings banks and other financial institutions
  • Passenger transport
  • Travel agencies
  • Funeral Services
  • Newspaper Sales
  • Lotteries