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Are the organizers of practical instruction for students with apprenticeship contracts exempt from the payment of social contribution tax?
According to the Government Decree, social contribution tax payment exemption and concessions set forth in Sections (1) and (2) of §1 of Government Decree No. 61/2020 (III.23.) are applicable to natural persons working in the framework of an employment relationship. The definitions of the two relevant legal regulations are to be considered when defining work a work relationship. Hence, the concept of cumulative employment relationship as defined in section (1) of §5 of the Social Security Act and Section (12) of §34 of the Social Contribution Act shall be applied.
Social contribution tax payment exemption and concessions set forth in Sections (1) and (2) of §1 of the Government Decree are only applicable to businesses pursuing activities listed among the TEÁOR [NACE] numbers set forth in Section (10) of §1 of the Decree and to the individuals employed by them (irrespective of their positions) in the framework of an employment relationship, thus it is not applicable to budgetary institutions.
Apprenticeship status does not qualify as an employment relationship by virtue of either legal regulation, thus the exemption and concessions are not applicable to such cases. However, vocational training employment contracts are actual employment contracts subject to Act No. I of 2012 on the Labor Code, rendering such legal relationships eligible for the favorable regulations provided by the Government Decree.
Source: National Tax and Customs Administration (NAV)
Social contribution tax payment exemption and concessions set forth in Sections (1) and (2) of §1 of the Government Decree are only applicable to businesses pursuing activities listed among the TEÁOR [NACE] numbers set forth in Section (10) of §1 of the Decree and to the individuals employed by them (irrespective of their positions) in the framework of an employment relationship, thus it is not applicable to budgetary institutions.
Apprenticeship status does not qualify as an employment relationship by virtue of either legal regulation, thus the exemption and concessions are not applicable to such cases. However, vocational training employment contracts are actual employment contracts subject to Act No. I of 2012 on the Labor Code, rendering such legal relationships eligible for the favorable regulations provided by the Government Decree.
Source: National Tax and Customs Administration (NAV)