SZČO (samostatne zárobkovo činná osoba) is the official status for a self-employed person in Slovakia. With this status, you work for yourself and are responsible for your own taxes and contributions. This abbreviation is used in documents from tax and insurance companies.
For example, everyone who works with a trade license (živnosť) has SZČO status, as well as some other people with independent income, such as authors and some freelancers.
What SZČO is responsible for
- Income tax — you calculate and pay this yourself through a tax return.
- Social security contributions — to Sociálna poisťovňa (Social Insurance Agency), usually starting from the second year of activity or when you exceed a certain income.
- Health insurance — monthly contributions to a health insurance company (zdravotná poisťovňa).
Unlike an employee, no one pays contributions for you — everything is your responsibility. Therefore, it is important to set aside money every month for taxes and insurance and to keep records of your income and expenses throughout the year.
