More and more professionals decide to abandon the job and choose to work individually. It’s not that complicated to do, but it’s often a question of which form of activity can best be justified, and what fees should be paid. So which kind of activity (individual activity according to a certificate, business license or work under a copyright agreement) can be the best choice?
Individual activity is successful when it wants to legitimize its activities and pay taxes on profits without significant investments. You can also take out an individual activity statement on a remote basis, so it will not take a lot of time or effort. All you need to do is simply choose the right kind of activity and order the certificate electronically. Extracting a certificate is free, it can be issued the same day. Individuals who work on a monthly basis are obliged to pay a compulsory health insurance, and after the end of the year they have to pay taxes to the STI (depending on the form of activity, 5 or 15 percent), and Sodra (28.5 percent from half of the income). From January 1, 2017, the taxes on the Sodra have increased slightly – declaring income for 2017 will require 29.7%. from half of the income.
This is also a fairly frequent choice when it comes to engaging in a particular activity independently. In order to register the form of this activity, in this case you will have to pay in advance for the whole period of your business license. For example, you can take it for several months or one year, depending on how long you plan to complete this activity. The income tax is calculated according to the area in which the activity is registered (in the metropolitan area the higher is the GPM). There are also statutory taxes and compulsory health insurance. It is also important to know that the business license is not suitable for all activities, so it’s important to ask if this form of business can be legitimized in a particular case.
Although this form of action may seem to be the most advantageous, the fees are rather high. The Tax Inspectorate is paid a 15 percent income tax, while Sodra is a social and health insurance tax, which amounts to 38.7 percent. Companies that need some services are more likely to choose individual business or business people as they are less taxed. So, if you receive quite a lot of orders, you should consider purchasing an individual activity certificate or business certificate.
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Do not hesitate to decide which of these forms of activity may be the best choice, and choose the one that suits you best. It’s worth calculating how much you will earn around the year and calculate how much tax you would have to pay in one or another case. Sometimes specialist advice may also be helpful – they can really help you figure out which form of activity you would like to validate, and you can decide even more easily.
Sometimes it is possible to do it on its own, and sometimes it is really helpful to contact the specialists who can do it for you. In the event that you choose individual activity according to the certificate, the accountant may need to apply only once a year, when it will be necessary to declare income, but it is always important to issue invoices to customers and calculate the income received. Sometimes it may be useful to send invoices when you need job-related services, because it will allow you to pay some costs, and if you do not have these costs, you will be allowed to make deductions of up to 30%. income – you can do it by declaring income.