Are YEL contributions tax deductible?

YEL insurance contributions are tax deductible. As an OP Light Entrepreneur, you pay the YEL insurance contributions with your personal wealth from your current account or from your company account. There are a few different ways to deduct YEL contributions, the easiest of which is to deduct them in your company’s taxation, by adding each invoice as an expense to the service.

Another way to deduct YEL contributions is to report the contributions on your personal tax return. The deduction has a slightly bigger effect through the personal tax return, as the automatically applied entrepreneur deduction (5%) on entrepreneurial income lessens the tax effect of the insurance contributions.

YEL contributions can also be reported on a spouse's personal tax return. The contributions should be deducted from the taxation of the spouse with the higher earned income that is subject to payroll tax and other progressive taxation.

You can deduct YEL contributions only once

Insurance contributions can only be deducted once. If you add the contributions to your accounts as an expense, you can no longer deduct them on your personal tax return and vice versa.
The most important thing is that the YEL contributions are deducted for tax purposes. As an entrepreneur, you can choose how you deduct them. The differences between the above methods are relatively minor, but they are accepted