Effective rate

Calculate the effective health-insurance contribution rate of a beginning self-employed person, if he applies a flat-rate expense of 60%, after deduction of expenses the tax base is divided by the Bulgarian constant 1.486 and then contributions are paid - rate 15%.

B. What income must such a self-employed person have so that the contributions paid equal the minimum contributions of 107.25 euros?

Data and rates are real in 2025. Do not consider other taxes or contributions to the social insurance.

Final Answer:

p =  4.0377 %
A =  2656.22 eur

Step-by-step explanation:

$$\begin{gathered} r_1=60\%=\frac{60}{100}=\frac{3}{5}=0.6 \\ b=1.486 \\ {r}_2=15\%=\frac{15}{100}=\frac{3}{20}=0.15 \\ q=(1-r_1)/b\cdot r_2=(1-0.6)/1.486\cdot 0.15=\frac{30}{743}\doteq 0.0404 \\ p=100\cdot q=100\cdot 0.0404=4.0377\% \end{gathered}$$

$$\begin{gathered} 107.25=A\cdot q \\ A=107.25/q=107.25/0.0404=2656.22\text{eur} \end{gathered}$$

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