Better Freelance Card or Toiminimi?

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Rosamunda
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Re: Better Freelance Card or Toiminimi?

Post by Rosamunda » Fri Feb 05, 2010 11:32 pm

JohnGabriel wrote:
Anyway, back to my original questions:

Which would be the pros and cons of a Freelance Card in my case?
N/A you usually need to be working for more than one employer to get a freelance tax card. THere are no cons. The pro is that all the employers you are working for deduct tax from your salary at the same rate. (People without a freelance tax card pay higher tax on their second job)
How much does it cost to obtain it?
Nothing
How much am I going to pay to maintain it (monthly/yearly expenses)?
Don't understand the question. The tax card is a piece of paper with a percentage on it.
Is the Freelance Card considered as "establishing a business"?
No, the freelance tax card is for people who work for more than one employer.
Will I lose any Social Benefit like in the case of "Starting-up a Company"?
Don't understand the question. The tax card is just a piece of paper with a number on it. It has nothing to do with social benefits.
Can I obtain a "normal" tax card like a common citizen, so to avoid paying more taxes than the average?
The amount of tax you pay depends on your salary. The rules are the same for everyone: Finns, non-Finns regardless of what they do for a living. A "normal" tax card indicates your tax rate percentage for your main job and also a higher tax rate percentage for your second job. This is for PAYE purposes but at the end of the year the real amount of tax you owe is compared to what you paid in and they refund the difference (at the end of the following year) or you cough up the extra (same rules for freelance and normal and toiminimi taxpayers).
Is there a way to earn this money tax-free?
Ask Vero. They are the only people who can give you a safe answer on that one. ( But I guess you could set up a limited company - minimum 2500 euro capital investment - and then pay yourself a dividend instead of a salary.... But if you can't cope with figuring out income tax then I can't see you coping wth VAT and all that company stuff.
After all, is it worth accepting this contract, given that I shall be outside any Social Security Coverage?
Don't understand the question. Surely it depends on whether you want the money, the experience, the contacts, the reference on your CV. Doesn't it?



Re: Better Freelance Card or Toiminimi?

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Upphew
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Re: Better Freelance Card or Toiminimi?

Post by Upphew » Sat Feb 06, 2010 9:58 am

penelope wrote:N/A you usually need to be working for more than one employer to get a freelance tax card. THere are no cons. The pro is that all the employers you are working for deduct tax from your salary at the same rate. (People without a freelance tax card pay higher tax on their second job)
Hmm.. iirc, with "normal" tax card you pay lower tax from primary and higher from secondary, with freelance it is same all the time. In the end you pay just as much taxes weather you get it in 5x10000 or 1x45000+1x5000.
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Rosamunda
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Re: Better Freelance Card or Toiminimi?

Post by Rosamunda » Sat Feb 06, 2010 5:48 pm

Upphew wrote:
penelope wrote:N/A you usually need to be working for more than one employer to get a freelance tax card. THere are no cons. The pro is that all the employers you are working for deduct tax from your salary at the same rate. (People without a freelance tax card pay higher tax on their second job)
Hmm.. iirc, with "normal" tax card you pay lower tax from primary and higher from secondary, with freelance it is same all the time. In the end you pay just as much taxes weather you get it in 5x10000 or 1x45000+1x5000.
Yes, I think we are saying the same thing. At the end of the year... it makes no difference.


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filecore
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Re: Better Freelance Card or Toiminimi?

Post by filecore » Wed Feb 10, 2010 11:29 pm

The only functional difference between a freelance tax card and a normal tax card is that as a freelancer, you can work for more than one employer without being taxed up to the eyeballs (60% on second income for normal tax card). A freelance tax card does not count as a business; it is simply a different type of personal tax card. End of story. I had one for about four years, working freelance for various places around Helsinki.

As for which is better for you - since you only have a single employer lined up, why not have a single tax card? You only need a freelancer card if you are going to simultaneously work for more than one employer. You said it's a "job contract" for a fixed period with a single payment at the end - this sounds like a subcontracting agreement. A tax card (freelance or otherwise) would require the contractor to take you on as an employee, pay your pension and social costs, accrue holiday time, and so on. This doesn't sound like it's the case here. If you're going to be contracted for a job, it sounds like they want you to be a company which handles its own social costs and to whom they can subcontract a task. More details about this job would be helpful.


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Pursuivant
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Re: Better Freelance Card or Toiminimi?

Post by Pursuivant » Thu Feb 11, 2010 12:04 am

The thing it sounds as "subcontract" it requires him billing it "foreign" or doing the "source" 35%... end result is not "having a job in Finland"... even if I am an arse, sorry, you being shagged there.
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paulrenn
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Re: Better Freelance Card or Toiminimi?

Post by paulrenn » Thu Feb 11, 2010 4:26 am

Are you going to work full-time for 4.5 months, with 1000 euro one-off payment at the end of it?
I doubt you need to worry about paying ANY taxes on that.

I am just guessing here, but if you are getting benefits from the state, this might not impact them.
I seem to remember something from years ago in the UK that even if you were unemployed you could
earn a little on the side, as long as it did not go over a prescribed amount. However I have no idea if
the same applies here, but you're making less than 250 euros/month from that contract. You'll need to
check it out.

Not trying to be rude or anything, but I'd be interested to hear what sort of job it is for that little amount
of money...I mean even cleaners and the like earn more - lots more! I might even hire you myself for that :)
Paul


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filecore
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Re: Better Freelance Card or Toiminimi?

Post by filecore » Thu Feb 11, 2010 10:12 am

Well, it's certainly true that establishing a basic toiminimi allows you to earn up to about 8500/year without charging or paying VAT, and up to about 6500 without having to worry about statuatory pension costs - it's effectively free money, after income tax (ennakkovero) is taken out. However, I don't know what the rules are on allowing somebody to establish a toiminimi who doesn't have resident status or a social security number - you'd be best to go down to the PRH (Patentti- ja Rekisterihallinto) in Kamppi and discuss it with them. This whole thing sounds a bit doubtful though, to be honest.


Rosamunda
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Re: Better Freelance Card or Toiminimi?

Post by Rosamunda » Thu Feb 11, 2010 8:43 pm

Any EU citizen can set up a business (Ky, Oy, toiminimi etc) in Finland irrespective of their nationality or residency status.

If I remember correctly, there is no requirement to set up any kind of formal business entity in order to operate as an "entrepreneur". As long as you don't hit the VAT threshold you are free to earn money as a private individual, by invoicing your clients, as long as you declare your income to the tax authorities.

This is typically what semi-retired people do, selling handicrafts or doing odd jobs for people. Of course, in this case you would not be covered by any kind of social insurance and your financial liabilities are all your own.


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