The professional income is the base for the calculation of social security contributions for self-employed persons. It is therefore their contribution base. There are different types of professional income:
Profit from the exercise of a liberal profession
These are earnings resulting from pursuing a liberal or intellectual activity or other types of professions as sole traders.
Example: lawyers, doctors, physiotherapists, childminders, company directors, architects, artists, consultants, entertainment industry workers, etc.
Commercial benefit
These are earnings resulting from pursuing an activity in trade or artisanship as self-employed.
Example: hairdressers, estate agents, bakers, electricians, heating engineers, joiners, etc.
Income as a shareholder or manager of a company
This is the income received for an activity as a company manager or director, often received as a monthly salary. It should be noted that even if managers or directors often have a salary slip, their activity is considered as self-employed for social security purposes.
- The salary of a self-employed shareholder or manager and the commercial benefit of the same company, if paid to the manager, are aggregated and subject to social security contributions as a professional income.
- When a self-employed person is a shareholder or manager of several companies, the total income received from each company constitutes the contribution base.
Other income subject to contributions
Besides commercial benefits, income received out of a liberal profession and salaries received by self-employed shareholders or managers, the following should also be considered as a professional income and must be included in the self-employed person's contribution base:
- replacement income, paid by the various social security institutions, such as sickness benefits.
- professional income received abroad by a self-employed person affiliated in Luxembourg (see also the 'Working abroad' section).