Providing a self-employed person with additional income
Providing a self-employed person with additional income
Question:
Hello!
According to documents, I am the owner of a company and technically everything goes through it - calculation of base and payment of insurances, fictitious salary.
In practice, I have a completely different business - online trading of second-hand goods, and this is my source of income, and based on the profit from it, I pay an annual tax - 15%.
From which activity should the insurance be paid - from the company of which I am a fictitious owner or from my real business?
As the owner of the company, is the amount of the insurance contribution double?
Thanks in advance!
Answer:
Hello,
There are some aspects that you did not specify, but we will try to answer your question.
As far as we understand, you declare the income from your online business as a natural person. The question here is whether you have registered as an ET (sole trader) or you do not have any registration and simply declare certain income and expenses at the end of the year and pay the corresponding tax. If you are on the option with ET, this means that you are a self-insured person (SOL) and pay monthly insurance and health contributions. If you are not a registered trader, even if you wanted to, there is no way to pay monthly insurance contributions as an individual.
On the other hand, you are insured as the owner and manager of a company. It is not clear here whether you are insured as a SOL or under a management contract.
As a SOL, you cannot secure yourself in more than one place. If we assume that you insure yourself as a SOL through the company and you do your online business through ET, then you can choose to insure yourself through one of the two - it doesn't matter which one. Your monthly insurance premiums will be the same.
If you are SOL through the ET and you are on DUK in the other company, you must be insured in both places.
If you do not have a registered ET, you owe monthly insurance and health contributions only from where you are SOL/DUK.
However, the matter of your insurance does not end there. Since you generated income from these online sales as an individual, regardless of whether you registered as an ET or not, at the end of the year when you submit your annual tax return, you must also make an equalization of the social security contributions made during the year. Your realized profit as an individual is collected together with other insurance income (if you have any). If the total amount thus obtained is greater than the amount on which you paid insurance during the year, you will have to pay insurance for the difference. Keep in mind that the amount on which the insurance is calculated on an annual basis cannot exceed BGN 40,800.00. That is, if during the annual equalization it turns out that your total insurance income is higher, then the insurance is calculated up to this amount.
We hope we have been helpful!
Greetings!
