freelance tax card queries

[snowcelt]

Hi all,

I get occasional jobs doing proofreading. Usially I kust bill this as sivutulo on my regular tax card and, perhaps naively, assume that it'll make be made up in the tax rebate at the end of the year. My girlfriend is on at me to get a freelance tax card for this keikkatyöt. So, do I simply march doen to the verotoimisto and ask for a freelancer card or what? What's it called in Finnish? I don't have a toiminimi because the work comes in dribs and drabs and so it's not worth going down this path I think. I'm open to correction though. Any help on this would be appreciated.

Cheers,

Kevin.

[Rosamunda]

When you do proofreading are you paid a salary? (ie with a pay slip and all the usual deductions)
The freelance tax card (yes just walk into the Vero and ask for it) just means all your employers deduct the same tax percentage. And the rate is called "Freelance prosentti"

Tax wise it probably won't make any difference TMI versus Freelance. But if you go down the toiminimi route then you have to bill the customer rather than him paying you a salary. And over 8500 euro turnover p.a. you need to do VAT accounting.

Vero should be able to give you some advice.

[dampa]

Penelope, please I need some advice on this too...before I jump to the tax office

I do freelance for companies abroad. Send them invoice/bill and I get paid for the service I render. In a year, I make less than a thousand €. Do I still need a freelance taxcard? Do I get a Toiminimi and VAT ID?

[Hank W.]

It depends on "who is the employer".... thumb rule:

The "employer" is the one paying social security and pensions... so if you make work for an "employer" you're a "freelance". If you sell yourself as a service, you are "toiminimi" as you pay your own social security and pensions.

[Rosamunda]

If your trading activity makes less than a thousand euro in a year, then you do not have to register your business as a TMI at the Patent's office and you do not have to register for VAT. However, you forfeit any advantages that having a business can provide.

You still have to declare the income to Vero for income tax purposes (on the tax return you just received), assuming you are a resident of Finland. They will add it to any other income you have and it will be included in your tax and you will get billed at the end of the year. It's a bit like self-assessment in the UK I think. BUT PLEASE check with them (DISCLAIMER, I am not a tax expert and do not give legal advice!!!!!).

I think there is a page on Vero about VAT for cross-border internet businesses. Have you tried using the glossary on http://www.vero.fi ??? They have English speakers on the phone lines, so it really is a good idea to call them.

[dampa]

If your trading activity makes less than a thousand euro in a year, then you do not have to register your business as a TMI at the Patent's office and you do not have to register for VAT. However, you forfeit any advantages that having a business can provide.

You still have to declare the income to Vero for income tax purposes (on the tax return you just received), assuming you are a resident of Finland. They will add it to any other income you have and it will be included in your tax and you will get billed at the end of the year. It's a bit like self-assessment in the UK I think. BUT PLEASE check with them (DISCLAIMER, I am not a tax expert and do not give legal advice!!!!!).

I think there is a page on Vero about VAT for cross-border internet businesses. Have you tried using the glossary on http://www.vero.fi ??? They have English speakers on the phone lines, so it really is a good idea to call them.

Well the official at my local tax office was no help when I visited so I should call instead because I am thinking that the trading activity might be clocking 2,000€ a year

However, you forfeit any advantages that having a business can provide.

...and what can these advantages be if I decide to get the Tmi?

[Rosamunda]

Well the official at my local tax office was no help when I visited so I should call instead because I am thinking that the trading activity might be clocking 2,000€ a year

You still don't have to register the business as long as you:
- are running your business from your home (ie you do not have a separate business address)
- you do not employ anyone (except your spouse or your children)
- your business does not require a permit (see section 3 of the Trade Act for the list of businesses that require a permit*)
- are not registering for VAT

However, you forfeit any advantages that having a business can provide.

...and what can these advantages be if I decide to get the Tmi?

There are tax advantages as part of your personal taxation could be at the capital rate (fixed 28%) rather than the progressive income tax rate. But it is complicated. And I don't have a Tmi so I'm not too sure.



* the list includes electricians, financial services, security firms, driving schools, debt collectors , taxis etc etc etc etc)

[dampa]

thank Penelope, your replies are highly appreciated.

Since I work here fulltime and the freelance income will be like a sivutulo, why do you think they would like to see my last month's salary slip to be able to determine what kind of freelance kortti I would need?

I thought they would just give the freelance kortti and I write there how much income I got from freelance jobs for the year and they tax accordingly...why would my income slip from the job here matter since they already have enough information about all my properties and income as shown on the last veroilmoitus paper that came home?

[Rosamunda]

why do you think they would like to see my last month's salary slip:shock:

Who is "they" ? The vero people? Yes they should have all the info they need. But if they ask, then you have to give. It's the way it works

I thought they would just give the freelance kortti and I write there how much income I got from freelance jobs for the year and they tax accordingly...why would my income slip from the job here matter since they already have enough information about all my properties and income as shown on the last veroilmoitus paper that came home?

Sorry, don't know. I guess the freelance work will be taxed as a "second" job, at a higher rate than your main job. But you have to ask them. I'm guessing.