Translation services - labor contract and freelance
Translation services - labor contract and freelance
Question:
Hello,
I want to ask you if if a person works on a contract of employment (I am a full-time teacher, that is, on a salary) whether he can also register as a self-employed person (BULSTAT) as an interpreter. If so, which one do you think would be the best option - to register a company EOOD or a freelancer under BULSTAT? In terms of what is more profitable than paying less in taxes? Because the translations that I will make or write will be for companies abroad (Europe and the USA), but they will not be regular and bulky. In any case, I will not have income from this activity every month.
Thanks in advance for the advice!
Answer:
Hello,
The fact that you work under a contract of employment does not in any way prevent you from registering an EOOD or working as a freelancer (after registering with the Bulstat register).
From a tax point of view - in your case (translation activity) it is much more advantageous to pursue an activity as a "freelance profession, since the taxable base is formed by all income from the activity, reduced by 25% of the legally recognized costs , without having to prove with documents whether you have incurred these expenses or not.If you carry on the activity through EOOD, the taxable base is formed by all income from the activity, minus the documented expenses for the same. rate - in both cases it is 10%.
In terms of insurance - in both cases you will need to insure yourself as a self-insured person (regardless of the fact that you are insured under an employment contract) at least on the minimum insurance income for self-insured persons. You should keep in mind that when you define your insurance income as a self-insured person, your insurance contract income is also taken into account.
In both cases you will need to have a VAT registration on the grounds of Art. 97a of the law (provision of services in EU countries) and you will be required to file VAT and VIES declarations on a monthly basis without charging and owing VAT and without being entitled to a tax credit. Upon reaching the parameters for compulsory registration under the VAT Act (BGN 50,000 turnover for the last 12 months), you are obliged to re-register under the VAT Act on the basis of Art. 96 of the same and then for the rendered services for the rendered services for Bulgarian individuals and legal entities you will have to charge and owe 20% VAT, while at the same time you will be entitled to a tax credit for the VAT paid upon purchase of materials or services received in connection with the activity.
We hope you found it helpful.
Greetings!
