"Income tax for the self-employed"?
Income tax plays an important role for the self-employed and wage tax for employees. However, wage tax is not a special type of tax. From an income tax point of view, there are no differences. Because wage tax is only the monthly advance payment of annual taxes, which is automatically paid by the employer. The self-employed also know this withholding tax payment in the form of the income tax prepayment.
Every employee receives their monthly salary as a net salary, as, among other things, wage tax is deducted. The amount of wage tax depends, for example, on the chosen wage tax class and the status of the employee. There is no extra wage tax for the self-employed.
Choice of income tax class - not for self-employed
- At the beginning of their business, the self-employed are not faced with the choice of which tax class to choose. There is no separate tax bracket for the self-employed. The Income Tax Act contains six different wage tax classes. None of these tax brackets are defined for the special case of self-employment.
- The self-employed therefore do not have to choose a wage tax class. Because only employees are assigned a tax class or, under certain circumstances, can choose this themselves. The tax class is the basis for calculating the monthly income tax to be paid to the tax office. As a self-employed person you have to Income tax and pay no wage tax.
- For the spouse of a self-employed person, the choice of tax class is more important. If he chooses tax class 3, the wage tax deductions are the lowest. There are also advantages when calculating sickness, unemployment and parental benefits.
The change from employee to self-employed
If you switch to self-employment, many of the basic information on the coat sheet will not change. This primarily affects your personal circumstances on the cloak sheet. Because there are no changes to the marital status, the number of children, the special expenses and extraordinary burdens.
The difference between wage tax and income tax is unlikely to be known to many ...
- As long as the total of your operating income does not exceed an amount of 17,500 euros, you can even do the profit determination informally.
- All of your work-related expenses, such as office rent, office equipment, ride costs or advertising, count as business expenses and are taken into account when determining profits.
- You can easily present your profit to the tax office with the form of the income statement.
- If employees want to get back overpaid income tax, they must file an income tax return. It is more difficult to fill out than in the case of a self-employed person.
- Employees have to submit a lot of evidence (income-related expenses) to the tax office.
As a self-employed person, that's enough Tax officewhen you sign your tax return. The tax authorities naturally reserve the right to carry out a tax audit. But until then you are actually only filing income tax returns.