DREAM / The Prime Minister resigns and wakes up under the Parisian bridge!

 Kliko këtu për të tjera
Voxpress:

New guidance for freelancers, if they have 80% of their income from one client they will be taxed at 13-23%.

2025-03-04 12:16:33Biznes SHKRUAR NGA REDAKSIA VOX
New guidance for freelancers, if they have 80% of their income from one client
Illustrative photo

Freelancers who enjoyed the partial repeal of the income tax law and avoided taxes of up to 23% in 2024 will this year have to pay the same as employees (after deducting expenses) if they earn 80-90% of their income from fewer than 3 clients.

They will be affected by another article of the law that was not repealed, which provides that self-employed professionals who provide 80% of their gross income from 1 client or 90% of their gross income from less than 3 clients will have their net income (profit after deducting expenses) taxed at employment income rates of 13 to 23%.

The tax administration, through a message sent to entities, has clarified that the obligation to declare and calculate tax begins on January 1, 2025. For this category, the tax to be paid will be calculated for the effect of the 2024 tax period.

"We would like to inform you that on 04.02.2025, the Ministry of Finance published an instruction, which you can find in the attachment, where in point 3 of the Instruction it is stated that income generated by self-employed persons with 80% of income from the same client will be considered as income from employment and will be taxed at 13 and 23% according to the limits.

"The implementation of the Ministry of Finance's instruction is from 2025 onwards and applies to the entire sales network that declares income from commissions based on the company's fiscal invoices," the tax notice sent to businesses states.

The Law "On Income Tax" was expected to begin implementation on January 1, 2024 with liberal professions, taxing their profits at rates of 15 and 23%.

But after numerous debates caused by the failure to correctly implement the law, as businesses providing free services were not recognized for expenses at the rate of 30% in the calculation of the tax prepayment, on June 27, 2024, the Constitutional Court made the decision to overturn Article 69, which provided for the start of the 15% tax on free professions from January 1, 2024, deciding to start its implementation from 2029, the same as other businesses.

According to this decision, businesses with income up to 14 million lek will not pay tax. While those earning over 14 million lek will be taxed at 23%.

Following the Constitutional Court's decision, the application of the law for freelancers who earn 80 to 90% of their gross income from 1 to 3 clients remained unchanged. For this category of self-employed persons, the law provides for income taxation at employment rates of 13 and 23%, after deducting expenses.

What does the guidance provide for the taxation of self-employed individuals with 80-90% of income from up to 3 clients?

In the examples given in the amended instruction "On some additions and amendments to the general instruction no. 26, dated 8.9.2023, "On income tax" was published in the Official Gazette a few days ago.

It is determined that gross income will be taxed at rates ranging from 13 to 23%, after deducting business expenses.

Expenses are declared or, if annual income is up to 10 million lek, the self-employed person has the right to choose to recognize expenses a priori at the rate of 30%.

They will also be calculated as expense deductions in the amount of 48 thousand lek per year when the employed individual has a child under the age of 18 and has the highest annual taxable income in the family.

As well as recognizing the deduction of expenses specified in point 22 of Article 22 of the Law "On Income Tax" which determines the deduction from the tax base "an amount of 360,000 lek if the annual income is over 720,000 lek, or an amount of 30,000 lek per month if the monthly income is over 60,000 lek".

In conclusion, the tax rate for calculating profit tax will be 13% for profits up to 2,040,000 lek and 23% above 2,040,000 lek./Monitor


Në përputhje me standarded JTI

Video

SHIKO KANALIN NE YOUTUBE
×