Agenda Profile: Mart Võrklaev
Draft law amending the Simplified Taxation Act for Entrepreneurial Income and amending other acts in consequence (463 SE) – first reading
2024-09-24
15th Riigikogu, 4th sitting, plenary sitting
Political Position
The political focus centers on amendments to the simplified taxation law for entrepreneurial income and achieving tax parity between private limited companies (OÜs) and users of the business account system. Aivar Kokk voiced concern regarding the disparate situation and the resulting additional administrative burden for entrepreneurs, adopting a critical stance toward the amendment. The Government (Minister/Ani) justified the change by referencing the rise in real value and the harmonization with the VAT liability threshold (€40,000).
1 Speeches Analyzed
Topic Expertise
High expertise in the field of taxation and social tax calculations, particularly concerning the Entrepreneur Account (EK) scheme and its effect on business entities. Technical terms were utilized, such as "input costs," the "effective income tax rate," and the "VAT registration threshold." Kairi Ani from the Ministry of Finance demonstrated profound knowledge when clarifying the complexities of the allocation of EK taxes.
1 Speeches Analyzed
Rhetorical Style
The style is formal and procedural, serving as a detailed and neutral summary of the Finance Committee's discussion. The emphasis is placed on logical and technical explanation, particularly concerning the mechanics of taxes and legislative amendments. Emotional or persuasive appeals are absent; the focus remains strictly on facts and the question-and-answer format.
1 Speeches Analyzed
Activity Patterns
The pattern of activity involves active participation in the work of the Riigikogu Finance Committee, the discussion of draft legislation, and the demanding of supplementary data (tax burden calculations). The presentation reports the results of the committee session (September 9) to the Riigikogu (September 24). Attention is focused on the legislative process and procedures.
1 Speeches Analyzed
Opposition Stance
Aivar Kokk presented criticism of the draft bill, focusing on policy questions related to how the measure would create inequality and impose an additional burden on entrepreneurs. He repeatedly asked about the definitions of the social tax and the true objective of the proposed change. Annely Akkermann posed analytical questions regarding the logic underpinning the social tax calculation, suggesting that optimization opportunities might exist.
1 Speeches Analyzed
Collaboration Style
The cooperation style is open to questions and answers, involving ministry officials (Kairi Ani), the minister, and members of the commission. The Chairman of the Commission requested additional calculations regarding the distribution of the tax burden, demonstrating a readiness for data-driven cooperation and clarifying details. The collaboration focused on resolving the technical nuances of the draft legislation.
1 Speeches Analyzed
Regional Focus
Insufficient data.
1 Speeches Analyzed
Economic Views
Economic perspectives focus on simplifying entrepreneurship and ensuring the immediate payment of taxes, while simultaneously stressing the need to prevent tax optimization compared to working under a standard employment contract. Support is given to adjusting tax thresholds in line with real value and inflation, though the potential additional administrative burden on entrepreneurs remains a concern. The objective is to enable users of the business account to provide services to commercial companies.
1 Speeches Analyzed
Social Issues
Social concerns regarding the taxation of the entrepreneurship account are limited to the social contribution and the portion allocated to the second pension pillar, treating these elements merely as technical tax components. It is crucial to prevent a situation where employees are pressured into using the entrepreneurship account, highlighting the necessity of considering social protection aspects.
1 Speeches Analyzed
Legislative Focus
The legislative focus is on the draft amendment (463 SE) to the Simplified Taxation of Business Income Act. The aim is to raise the income limit for the business account to 40,000 euros and regulate the social tax obligation for companies that purchase services through the business account. The speaker, acting as the Chairman of the Finance Committee, supports and summarizes the handling of the draft bill.
1 Speeches Analyzed