Freelancer Taxes

A freelancer is a person who performs work without first concluding a long-term contract with an employer and is a freelancer of a company. Usually, freelancers provide their services remotely, and therefore do not have official income. The question arises: is it necessary for a freelancer in such a situation to pay tax to the state?

The answer to this question will be unequivocal: yes, and certain amounts of monetary compensation, which are accrued in accordance with the terms of the contract, will act as taxable income. Tax issues of freelancers are very often worried because of the possible with the tax office.

As a result, we can conclude that it is necessary to pay taxes, since the freelancer carries out entrepreneurial activities that bring systematic income. Evasion of the mandatory payment of the contribution threatens with fines, tax, administrative and even criminal liability. To prevent this from happening, you need to pay taxes.

It is worth noting that freelancers are usually paid for by transferring funds to a bank card, because this payment method is very convenient and does not require personal contact to transfer money. Also, the relationship between such a freelance worker and the customer as an employer is most often not formalized in any way.

The simplest solution to the problem of income transferred to electronic money accounts is the introduction of registration as an individual entrepreneur for independent entrepreneurs

Internet employees, as well as the use of only those payment systems that have a clear tax payment instrument. In this way, many problems have already been solved in countries where money circulation using electronic money is very highly developed and is a well-functioning mechanism of the “employee-employer-state” union.

What is the danger of non-payment of taxes?

The tax office may suddenly become interested in the activities of a freelancer when they conduct an audit of some large customer and find decent amounts in his expenses for certain services. Non-payment of taxes can threaten:

  • a tax penalty plus a recovery of the amount for entrepreneurial activity;
  • an administrative fine from 500 to 2 thousand rubles;
  • criminal punishment: arrest up to six months or work up to 480 hours.

The last point is unlikely to apply specifically to a freelancer, since this option is too strict for such violations. To apply the article of the Criminal Code, state bodies will need to prove that the activity caused damage on a large or especially large scale.

If you have just started freelancing and your income is still small, it is really not worth going to the tax office. The downside of this approach is the risk of being caught in non-payment of tax by the inspectorate and the absence of contributions to pension insurance. Another option for legalizing your work is to conclude a legal contract with the customer.

In this case, there is a big advantage: the employer officially becomes a tax agent and transfers 13% of personal income tax to the state budget for you, plus you also pay contributions to the Pension Fund. In addition, under the contract you work officially.

This option also has pitfalls. Not every employer will agree to draw up and sign this type of contract, because he will have an additional burden in the form of unnecessary reporting and insurance premiums.

The most beneficial for both parties is a contract with an individual entrepreneur, where the customer does not have to pay taxes established by law, since the freelancer himself will pay them and insurance premiums, but they will be much less than under an agreement with an individual. An individual entrepreneur can pay either 6% of the income received, or 15% of the amount of all financial accruals minus expenses.

Currently, freelancers are encouraged to register as FLP (individual entrepreneur). Every year the number of such entrepreneurs is growing rapidly, so we can say that all is not lost.

Having formalized your professional activities, you:

  • socially protected;
  • earning a pension and seniority;
  • get such an important prestige in the eyes of the client;
  • sleep well because you work legally.

Freelancer and foreign economic activity

In a situation where a freelancer plans to carry out foreign economic activity in the future, then he is obliged to register himself as an individual entrepreneur.

After the registration procedure, the future entrepreneur needs to take several important steps:

  • choose a simplified taxation system for yourself;
  • conclude a foreign economic contract with the customer;
  • open currency and hryvnia accounts in the bank;
  • register primary documents in accordance with the legislation of your country;
  • Submit puffiness and important documentation to the tax office on time.

It is worth noting one important criterion – the contract must fully comply with the requirement approved by the order of the Ministry of Economy and contain all the necessary details prescribed by law.

At the moment, tax control over cash transactions is practically not carried out, since almost always there is a counter tax audit by analyzing the financial transactions of the client. The main problem is the lack of legislative regulation in this area, and therefore, for the majority of freelancers, it makes no sense to register as an individual entrepreneur, since the tax authorities will not be interested in them.

Many freelancers often think about starting an entrepreneurial activity, which undoubtedly has its own advantages. So, becoming a businessman, a person can get a stable status in cooperation with potential customers and independently choose the optimal taxation system.

When, after many sleepless nights, the diploma is finally ready, I want to pass it and forget it. But the university will not lag behind the student so easily. After all, the full text of the diploma was read only by the supervisor, and a whole commission will gather to evaluate it. Therefore, in many respects, his assessment depends on how a student defends a diploma.

So what is a successful defense?

  • Competent protection text
  • positive diploma review
  • confident answers to commission questions

In the introduction to the course it is necessary to indicate many important points. One of them is methodology. The student is required to indicate what methods he will use in the study of the topic. This is not the easiest task, and often students cannot cope with this task themselves. In this case, you can contact us. Our experts will write you a paper of any complexity, and you can discuss the price with them personally.

In the introduction to the course it is necessary to indicate many important points. One of them is methodology. The student is required to indicate what methods he will use in the study of the topic. This is not the easiest task, and often students cannot cope with this task themselves. In this case, you can contact us. Our experts will write you a paper of any complexity, and you can discuss the price with them personally.

In the introduction to the course it is necessary to indicate many important points. One of them is methodology. The student is required to indicate what methods he will use in the study of the topic. This is not the easiest task, and often students cannot cope with this task themselves. In this case, you can contact us. Our experts will write you a paper of any complexity, and you can discuss the price with them personally.

In the introduction to the course it is necessary to indicate many important points. One of them is methodology. The student is required to indicate what methods he will use in the study of the topic. This is not the easiest task, and often students cannot cope with this task themselves. In this case, you can contact us. Our experts will write you a paper of any complexity, and you can discuss the price with them personally.

Speech structure

Of course, what exactly to say in the defense depends mainly on the topic of the thesis and on what exactly is written in it, but there are general recommendations that are suitable for everyone.

  • First of all, we need to greet the members of the evaluation committee. (“Dear members of the attestation commission! Your attention is presented to the final qualifying work on the topic …”)
  • Introductory part. Here you need to reveal the topic and identify the issues that are raised in the work.
  • Relevance of the topic. At this stage, it is important to prove the relevance of the chosen topic and the degree of its development in other people’s works. Indicate the subject, object, objectives and purpose of the study.
  • Theme disclosure structure. Here you just need to list the paragraphs that are in the work and briefly describe them.
  • Problem statement. To confirm the relevance of the topic, it is necessary to state the problem and indicate the debatable opinions on this matter.
  • Conclusions. At the end of the speech, the commission should hear the conclusions that the student came to in the course of writing the diploma, in which there are ways and methods for solving the stated problems.

On the one hand, it seems that it is much easier to write a graduation speech than the diploma itself. However, high-quality speech is a skillful squeeze out of the work, as well as its competent presentation. And it often happens that a diploma is written with the highest score, and a student gets a worse grade. Therefore, if there is a lack of self-confidence, you can order a speech on our website. And then the probability of failure due to bad speech will disappear. After all, we give a twenty-day guarantee for the work, and if something does not suit you, you can demand that the author finalize the order for free. We make sure that students are satisfied, so if the final version of the work does not meet the stated requirements, you will get your money back.

Formal requirements

When writing a speech for a thesis, you must also take into account that there are purely formal requirements.

  • Time. Do not forget that there are many students, but the commission is one. Therefore, the time for a defensive speech is regulated and ranges from 5 to 7 minutes. At the same time, you should remember about the time that will be spent on commission questions.
  • Intonation. Where, no matter how on the defense of a diploma, is it important to win over listeners? Therefore, it is better not to read the speech monotonously, making accents with intonation.
  • Style. When presenting a speech, it should be remembered that the main goal is understanding on the part of the commission. Therefore, you should not be too smart, but you can’t switch to colloquial speech either. In this matter, you need to observe the golden mean.
  • Pronouns. As in the diploma itself, it is important to remember during the defense that although the author of the diploma is clearly spelled out, there are a lot of true owners of knowledge reflected in the work (the authors of all the sources the student relied on plus the supervisor), so first-person pronouns are not appropriate here.
  • Questions. After the end of the speech, questions from the commission will inevitably follow, and you need to be ready for them. Suggested questions should be written down in the course of writing the thesis, work through all the questions that arose during the pre-defense, and you can also look at the questions at the end of chapters from textbooks on this topic.
  • Pre-protection. In such a matter as defending a diploma, it is better not to be presumptuous and neglect pre-defense. On it, you can practice giving a speech and write down possible questions from the audience. This will allow you to feel more confident in the official defense.

Of course, these are only recommendations, and no one forces you to strictly follow them. However, the rejection of some positions during the defense will create additional questions from the certification committee, which is not always loyal. Therefore, it is best to think through all possible questions and answer them in advance in a defensive speech. Then the teachers will have a minimum of questions, and they will be grateful for the saved time.