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#1 izrafel  Icon User is offline

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freelancing and tax?how is that solved in your country?

Posted 26 March 2011 - 05:24 PM

well i am not sure if this topic is for this section, if not please move it where it belongs, thanks :)
Ok here is the question,I believe that in all countries you have to pay some taxes for the monthly income, somewhere are more somewhere less, but how do you legitimize income from freelancing and to be more precise income from freelancing web sites?(like odesk for example)?In my country (Bulgaria) the problem isn't solved at all, and i mean you have to be a "criminal" if you do that kind of work. Let me explain, here, for every project you have to have a contract, ok this is ok, but when you do a job for 40$, and the contractor is half the world away, well that is not such a good thing, i mean with the contract.So now, if you have done some kind of a work like that you can't legitimize the money you have received for the work, no contract... and nobody will say ok , send me contract halfway around the world and i will sign it and send it back, 1. who will pay the logistics; 2. and for the time spent; etc etc. And that has kept me from doing freelancing. :(
how is this regulated in your country(ies) ??
P.S i am just interested how these things are regulated else where, but i don't want to sit down and start reading xs' (country) tax and money laws :P
I believe it would be an interesting and helpful discussion :).

This post has been edited by izrafel: 26 March 2011 - 05:26 PM


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Replies To: freelancing and tax?how is that solved in your country?

#2 calebjonasson  Icon User is offline

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Re: freelancing and tax?how is that solved in your country?

Posted 06 June 2011 - 10:14 AM

In my country (Canada) the tax is based on if you do it full time or part time. If you only do freelancing part time than you pay tax at the end of the year based on how much money you have made. If you freelance full time and have a business license than you can charge the company to pay the taxes which will be covered by the government. Business numbers are rather simple to receive and almost anyone can get one. This seems great but at the end of the year you do pay taxes yet again as a business owner.

As far as the contract goes you should be emailing to discuss terms and fax a copy for signing. Even on small amounts (of course depending on the contracting job and what is stipulated in the contract) you should be requesting so much % up front. I think that the average is around 40-50% up front before doing anything. It helps prevent being screwed over.

Here is an excellent Video for designers that are doing contract work but it applies to almost all freelancing and the main focus is lawyers and contracts. http://vimeo.com/220...ource=swissmiss
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