Social charges and contributions: general principles
What is the basis for calculation of contributions?
The basis for calculation varies according to the tax regime (flat-rate or actual), and the farmer’s choice in terms of income to be taken into consideration, three-yearly average or annual option.
This choice is made for a minimum of 5 years.
One must separate the notion of “tax result” from that of “management result”. The tax result is used to set the basis for MSA and CSG social contributions.
What is the basis for calculation of social contributions?
Social contributions are calculated on the professional income + income from capital assets (e.g. income from property, etc.).
MSA contributions are calculated on the professional income.
When must contributions be paid?
For the call for contributions, the position as farm manager must be effective as at 1st January of that year.
In case of installation during the year, no contributions are due for that year but rights to health and family cover are available.
What are the different types of contributions?
Four types of contribution and one obligatory insurance must be paid by the farmer:
