Income tax means tax from income of natural persons, obtained or gained in a tax year, which equals the calendar year. Income tax is imposed on all income and profit, regardless of the nature and type, other than those that are expressly exempt from payment or those that are subject to taxation pursuant to other laws. The central group of taxable income includes income from employment.
Income from employment includes income from employment relationship as well as income from other employment relationship. The Personal Income Tax Act defines that income from other contractual relationship also includes income received for the creation of a copyright work and income for the implementation of copyright or folklore work. Income from other contractual relationship also includes income from work performed or services rendered which is not income from an activity or in relation to an activity, and income of religious workers from their relationship with a religious community.
Income from other employment relationship is subject to social security contributions and income tax. In certain cases, it is also subject to a special tax on certain earnings. Considering the fact that the basis for the payment of contributions and income tax in respect of income from other contractual relationship is not uniform, this raises a question about the suitability of charges on income from other contractual relationship, mainly in comparison to income from employment relationship, because both are deemed income from employment.
It also raises a question whether social security contributions for income from other contractual relationship are really so different by their nature that it is permissible to make distinction in determining the basis for the payment of contributions.