Freelancer Taxation
Freelancer Taxation
Question:
Hello!
I've been a freelancer for a few years now, occasionally have some projects I'm working on, but by no means have I had the security and income to start a company. My income is around BGN 3,000, which until now has prevented me from taking this step - I think it is not necessary at this stage. I am being offered a part-time freelance position, and within a few months this position is expected to become full-time. Everything is described in the contract, I am satisfied, but they want me to send invoices at the end of each month with the corresponding amount we have agreed on. Until now, I have not been registered anywhere, nor have my income been reported correctly, since the work was not enough. I have researched my options - I have no interest in registering as a legal entity or as self-insurer given the impractically high taxes I will owe to the state. The option I am considering is to use the company of close people who are active in my field, concluding a contract with them for 4 hours. They should deduct this mandatory 10-15% and give me the difference from the amount transferred by my client. This will be for a few months, and then when I'm full time, everything will go through my client's company.~~~ Are there other options that would be practical for me and my situation? What would you advise me?
Thanks in advance!
Answer:
Hello,
The legal options before you are exactly the ones you described. We accept that working through a foreign company is ok if we are talking about a case in which you are assigned to an employment contract in the given company and receive your income in the form of a salary. Compared to working as a freelancer or working through a company, we believe that this option is much less profitable. For the option in which you plan to spend your income through a company, and for them to withhold the due profit tax and dividend and give you the rest of the income "in hand" or for other similar options, we cannot give a professional opinion, since it is a serious deviation from taxation.
We hope we have been helpful!
Greetings!
