Freelancer or company?

Freelancer or company?   

 

Question:

Hello,
I work on a full-time employment contract, I am insured above the maximum insurance threshold. I want to start an additional job as freelancer, a freelancer, as the platform through which I will be required to provide VAT Number. The annual turnover will be over 50 000 BGN. Is my question compulsory to register a business or can I also act as a self-insured person?

 

Answer:

Hello,

 First of all, we will make it clear that in order to act as a physical self-insured person, or as a so- freelancer you need to practice from the circle of so-called. "liberal professions", for which you can get a BULSTAT registration with UIC and you can register under VATA. From an online report you can easily find which are the so-called "freelance".

 From the point of view of a company / freelancer registration, if the activity you are doing is a "free profession" and you have the opportunity to provide some kind of certificate, diploma or certificate that certifies your qualification in the relevant field, you will be able to sign up for Bulstat and take out the UIC, and then register for VAT, if you want to re-establish a company and through it to carry out the business, it is not necessary to provide any your certificates, but simply making a company registration and indicating the activities you will be doing.

 From the tax point of view, the difference between free trade registration and company registration is that in the free trade there is no need to collect cost documents, but you have statutory recognition, which is 25% of the value of all income. Generally, at the end of the reporting period, all revenues are legally recognized and paid 10% income tax individuals. In case you made a company registration and thus do your business, documents are collected for all expenses and at the end of the reporting period they are deducted from the income and thus the taxable profit is formed. Corporate Tax (or "Profit Tax") is 10%, but there is a further 5% dividend tax on the amount to be distributed as a dividend at the end of the reporting period.

 From the point of view of the insurance and registration of a company and when registering a "free trade", you will not owe insurance contributions as a self-insured person, provided you are insured elsewhere in the maximum insurance income.

We hope we have been useful.

If there is any further interest, we are at odds.

 

Greetings.