Social security contributions are a major monthly expense for sole proprietors and have a direct impact on liquidity. Contribution amounts are determined based on the previous year’s taxable income, meaning that incorrect data can lead to excessive or insufficient obligations throughout the year.
How are contribution bases determined?
Contributions are calculated based on:
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taxable income from the annual tax return,
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statutory minimum and maximum thresholds,
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decisions issued by FURS.
Most common issues in practice
Sole proprietors frequently face:
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excessively high contribution bases,
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incorrect tax return data,
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missed deadlines for objections or adjustments,
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unnecessary cash flow pressure.
➡️ Practical advice: Incorrect contribution assessments rarely resolve themselves — timely action is essential.