Glossary
Penalty in social insurance for self-employed persons
The tax office sends the income tax assessment notices to the SVA so that it is informed of the self-employed income. A penalty surcharge of 9.3% is levied if compulsory insurance is established at a later date.
Penalty in social insurance for self-employed persons
The tax office transmits to the social insurance institution the relevant data of the income tax notices, so that the Social Insurance Institution for Commerce and Trade (Sozialversicherungsanstalt der Gewerblichen Wirtschaft, SVA) has a full picture of the earnings from self-employed work that is relevant for social insurance. If it is found only after an income tax notice has been issued that a person has a duty of compulsory social insurance, the SVA imposes a penalty in the amount of 9.3%. The surcharge is not applicable if the social insurance institution was notified within eight weeks after the issue of the tax notice that the insurance threshold has been exceeded.