Civil contract. Insurance and taxes

Civil contract.
Insurance and Taxes

 

Question:

Hello,
I am a natural person appointed on a labor contract. They offered me work on a civil contract, and we understood about an amount of "X" levs. I signed the contract, but I did not pay attention to a point saying that "THE CONTRACTOR is obliged to pay the contributions and taxes himself" and accordingly in the service note they gave me I have no deductions and taxes. Now where do I pay these social security contributions, what percentage are they and where I put them in my annual statement because I do not see a person's bill or something in the business earnings app. Is it right to keep them at all, provided I am not a self-insured person?
Thank you for your time!

Answer:

Hello,

Once you have no explicit declaration that you are a self-insured person, the obligation to withhold and pay the due contributions and taxes under the civil contracts is the responsibility of the person who pays the income under non-employment contracts. For the last quarter of the year, the payer of the income does not deduct the tax on the paid wages, but must deduct and pay both the income recipient's income and the insured at the expense of the payer.

However, if you have been identified in your bills as self-insured person and have signed such an account, you will need to make the contributions due as self-insured person.

A civil contract wording such as "The CONTRACTOR is obliged to pay the contributions and taxes itself" has no relation to the current tax and social security legislation in Bulgaria and can not cancel the obligations of the payer of income under non-labor contracts.

When declaring your paid salary for 2014 on their behalf (and also if they have submitted a return of 1 in the year for the months when they paid you), they automatically incur an obligation for them to pay the contributions due for your paid.

If you have not submitted a 1 st statement and will not declare your paid salary for 2014, then everything remains in the gray economy.

Greetings