Additional income from processing photos and videos

Additional income from processing photos and videos

Question:
Hello!
I have the possibility of additional income by working on the Internet. It is about processing videos and photos of a person abroad. Accordingly, it will pay me via PayPal for the service. This will happen every two or three months, and the amount is between BGN 500.00. - BGN 1000.00. It can be paid in twice. What should I do in this case? I want to declare this additional income, but when should this be done? Do I need to have Bulstat, as this will be an income that I will not receive every month, but when transferring the amount via PayPal, it will say service charge. Please help me very much. I don't want to hide income in any way, no matter what it is!
Thanks in advance!

Answer:
Hello,
The best option for you is to register in the Bulstat Register as a self-employed person. In this case, you will owe 10% tax on the amount of income, deducted by 25% of legally recognized expenses and the insurance contributions you owe. The insurances you will owe on your part are about 28% of the amount of income, again deducted by 25% of legally recognized expenses (if the received income is below the minimum insurance income for the country, the insurances you will owe will be calculated on the minimum insurance income. The advantage of registering as a self-employed person is precisely the 25% legally recognized costs that you are entitled to.If you carry out the activity you described without this registration, then the law treats you as a Sole Trader (ET) and accordingly you must pay taxes as an ET - they do not have these 25% legally recognized expenses and the tax on realized income is 15%.

We will also give you an example with your expected income. Let's say that the average monthly income will be BGN 800.00. In this case, 25% legally recognized expenses mean that you deduct BGN 200.00 from this amount, leaving BGN 600.00 on which to calculate the insurance contributions. Since the minimum insurance income for the moment is BGN 710.00, the insurance will have to be calculated on this amount, which means a BGN 197.00 insurance contribution. The tax you will owe will be obtained by subtracting BGN 197.00 from BGN 600.00 and multiplying the resulting amount by 10%: BGN 600.00. – BGN 197.00 = BGN 403.00 * 10% = BGN 40.30 Or you will owe a total of BGN 240.00 in taxes and insurance on a monthly basis with an income of BGN 800.00.

If you decide to act without registration, your insurance contributions would be BGN 197.00, correspondingly the tax you will owe is BGN 800.00. after deducting the insurance contributions, we get an amount of BGN 603.00, which must be taxed at 15% tax. Thus we receive BGN 90.45 tax + BGN 197.00 insurance contributions or a total of BGN 290.00 in taxes and insurance on a monthly basis.
We hope we have been helpful!
Greetings!