> ## Documentation Index
> Fetch the complete documentation index at: https://docs.penzum.app/llms.txt
> Use this file to discover all available pages before exploring further.

# Itemised entrepreneurial income tax (VSZJA)

> The basics of itemised cost accounting in Penzum

Itemised entrepreneurial income tax (vállalkozói SZJA / VSZJA) is based on itemised cost accounting — you deduct your actual, receipt-verified costs from revenue, rather than a fixed cost ratio. This requires you to keep your own records: [Withdrawal Log](/en/withdrawal-log), [Fixed Assets](/en/fixed-assets), and — if you have cash transactions — [Cash Book](/en/cash-book).

## How does Penzum calculate it?

1. **Entrepreneurial income** = revenue − itemised expenses − depreciation
2. **Entrepreneurial tax base** = income − withdrawal (at least 0)
3. **9% entrepreneurial income tax** on the tax base
4. Part of the after-tax income forms an **entrepreneurial dividend base**
5. The dividend base is taxed at **15% SZJA + 13% social contribution tax (szocho)** (szocho has an annual cap)
6. The [withdrawal](/en/withdrawal-log) is taxed separately: **15% SZJA + 18.5% social security contribution (TB) + 13% szocho**
7. **HIPA** (local business tax, if configured): (revenue − expenses) × your municipality's HIPA rate

## Withdrawal and the TB base

As a full-time sole trader, your TB contribution base is at least the annual minimum wage (or guaranteed minimum wage) — even if your withdrawal is lower. During childcare fee (GYED), childcare allowance (GYES), or sick leave, this minimum doesn't apply, since NEAK covers TB during these periods. For part-time and retired sole traders, TB (and for retirees, szocho too) is only due on the amount actually withdrawn.

## Social contribution tax (szocho) cap

Szocho has an annual cap (24 times the minimum wage). The withdrawal's szocho already counts toward this cap — if you're a part-time sole trader, the employer's szocho base recorded on the [Employment](/en/employment) page also reduces the remaining cap, so you don't pay twice.

## Who is it recommended for?

VSZJA is typically advantageous if your actual, verifiable costs are higher than what a flat-rate cost ratio would deduct. In exchange, it requires more administration — a Withdrawal Log, Fixed Assets register, and sometimes a Cash Book.

<Warning>
  This calculation is an estimate, not an official tax assessment. Always consult your accountant before switching tax forms — see the [tax form guide](/en/tax-form).
</Warning>