Profit from individual activity under certificate is income minus expenses: either 30% of income with no paperwork, or actual documented costs. The flat 30% option is not available when the income comes from your own employer. With actual expenses, the year's calculated VSD and PSD contributions are also subtracted from profit — that result is the income-tax base (GPMĮ art. 18). Note that the flat 30% is notional: you do not actually spend it, so your net profit usually comes out higher than the profit figure shown in the breakdown.
The income-tax rate is 20%, but the income-tax credit (GPMĮ art. 18²) brings the effective rate down to just 5% while taxable income stays under €20,000. It then climbs steadily, reaching 20% at €42,500. Above that threshold the credit no longer applies and the progressive 20%, 25% and 32% rates are charged on the entire amount, not only the part above the threshold.
Sodra contributions are calculated on 90% of profit: VSD at 12.52% (15.52% with extra pension accumulation), PSD at 6.98%. The annual contribution base is capped at €99,422.45. At least €80.48 of PSD is due every month, unless you are insured some other way — through an employment contract or by the state (for example, pensioners and students).
The calculator does not model the first-year VSD relief, the agricultural regime, or carrying losses forward. Income is declared on the annual GPM311 return by May 1 of the following year.