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I just did the math from all my work last year and even only paying myself €1000/month and adding everything up (VAT + Social Security, Salary Tax and other business taxes) for every €1 of profit, I have to pay €0,50 to the government. This is in a small scale business without any employees (just me) and pretty much at break even after all taxes and my small salary.
It's pretty crazy that at this scale 50% of all the money I make goes to taxes.

@hugo
What country are you in?
I wonder how these numbers look for a medium size company?

@hugo O_o

That's frustrating to read, I can only imagine how that feels.

🤗

@kemonine it’s crazy, it’s like have another person receiving salary that does absolutely zero

@hugo it's the same way in the US. The biggest tax breaks go to the biggest earners.

@kai
@hugo
From your description it seems you use "Recibos Verdes"

@hugo
So that means since you are your own employer, if your buissness goes busted you are not entitled to unemployment money even though you payed taxes to segurança social? Just like recibos verdes?

@maryjane yes but I think that has changed. Not completely sure but I think that now there is a way to receive unemployment via recibos verdes publico.pt/2018/06/05/economia but not sure how it works now for “sócio gerente” because you cannot fire yourself :) and only involuntary unemployment will give you access to unemployment support.

@hugo
"only involuntary unemployment will give you access to unemployment support."
True. I've been out of portugal for the last 1,5 years so i'm not keeping up with all the changes. Was not aware of that changr in recibos verdes. But being your own buissness in portugal sucks, from a tax and social security point of vew.

@maryjane I don’t know how much better or worse it is in other countries but in here it’s not easy especially for micro and small companies :|

@hugo wow, that's unbelievable. At 1k/month I'd expect you'd still be at a reasonable tax bracket, but 50% is bonkers.

@meqif from the salary part, I am at a reasonable tax bracket from an employee stand point but has I am my own boss all other taxes (social security, etc) are a cost to me. Adding my personal tax to my company tax is what makes it go that high. For a single person company is crazy.

@hugo for sure, it really is! Thanks for clarifying

@P Well, I could be making much more money doing consultancy here but prefer less money and doing what I want ;)

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