Last April, admittedly with a long delay, Circular D.15/D’/619/15/13-04-2018 of the Deputy Minister of Labor, Social Security and Social Solidarity was published regarding the insurance contributions of company members and/or managers in accordance with Law 4387/2016 and clarifications were provided on this major issue that had been of concern to entrepreneurs and tax experts since the start of the implementation of the new insurance law. Despite the fact that this circular sets the start date of insurance of management fees in O.E., E.E. and E.P.E. as 1.6.2018, it was practically impossible to withhold and pay insurance contributions, since the circular of the E.F.K.A. had not been notified. by determining the coverage packages, insurance rates and, more generally, the details for submitting the A.P.D. in these cases.
In February of this year (ed. 21.2.2019) a document of the Ministry of Labor, Social Security and Social Solidarity was notified with the number of the protocol. Φ.10141/44090/1189/2019, which is essentially a response document to EFKA, so that the EFKA Administration can then proceed with the drafting and notification of the circular with all the details for the insurance of the cases in question. The following emerged from the above response document:
- Total percentage of insurance of management fees for managers in O.E., E.E., E.P.E.: 34.10% [i.e. without contributions (in favor of OAED, OEK & OEE), given that the exercise of manager duties does not have the characteristics of dependent employment, as the management fee does not result from the conclusion of a dependent employment relationship, but from their corporate status].
- Total percentage of insurance of management fees (third parties) in O.E., E.E., E.P.E.: 41.06% [with contributions (in favor of OAED, OEK & O.E.), because in this case we have a case of hiring a third party for this purpose].
Today, the hub has secured an important piece of news exclusively. The Ministry of Labor, after the long delay in the issuance of the circulars by the EFKA for the withholding and payment of social security contributions, for reasons of good administration, decided to amend the circular D.15/D’/619/15/13-04-2018, only with regard to the start date of application for the imposition of social security contributions on the said management fees, from May and specifically to apply from 2.5.2019 — due to the May Day holiday — (ed. from 1.6.2018 which it initially specified). According to the hub’s sources, this new circular will most likely be notified within the day and at the same time, by midnight, the circulars from EFKA with the coverage packages as well as all the other details will also be notified.Admittedly, it is a positive development because during this time there was great confusion regarding this issue, while many were those who withheld insurance contributions without being able to pay them to EFKA since there were no coverage packages, etc. so that the A.P.D. could be submitted. According to the same sources, the circulars that will be published today will provide all the details for addressing all the issues that have arisen to date, while instructions will also be issued for other issues that had not been clarified to date.