How does automated tax payment work?
The micro-enterprise tax rate for income is:
- up to 25 000 EUR per year – 25%
- over 25 000 EUR per year — 40%
The bank reserves 40% (the maximum rate) of each deposit into the SDI account. SRS verifies that income has not exceeded 25 000 EUR per year. If it has not, the reserved amount is released to the account within two business days, and 25% is paid into the state budget. If income exceeds 25 000, 40% of the amount exceeding 25 000 EUR for the year is paid into the state budget.
Complete information on automatically paid tax can be found in the EDS section Reports → Reports on tax calculations and advance payments → Report on micro-enterprise tax return data.
How can I cancel my SDI account?
To stop using an SDI account:
- submit an application through EDS no later than 3 business days before you plan to stop using the account The application form is located in EDS section Documents - From the form - Other - Application for a simplified tax payment solution (SDI account).
- SRS will inform the bank and the taxpayer within 1 business day after receiving the application on the termination of simplified tax payment, indicating the termination date. Taxes are calculated and paid automatically for deposits made up to and including this date.
- If you terminate economic activity, the SDI account is closed on the date SRS approves the notice of termination of economic activity. Additionally, SRS informs the bank.
Who may not use an SDI account?
! SDI accounts may be used by micro-enterprises only.
The SDI account will be terminated automatically if:
- you cease to operate as a micro-enterprise and start using another tax payment regime or
- use of the SDI account is not approved or suspended by the bank for one of the following reasons:
- the account is deemed a basic account within the meaning of the Law on Payment Services and Electronic Money
- the account has been closed or is being closed
- the supervisory authority of commercial banks has limited making payments from the account