How can I save taxes as a self-employed person?
August 12, 2022 | 50,00 EUR | answered by Ulrike Voss
Dear Tax Lawyer,
My name is Rolf Hofstetter and I am a self-employed entrepreneur in the IT industry. In recent years, I have noticed that my tax burden is continually increasing and I would like to find ways to save on taxes.
Currently, I am paying a high tax rate on my income as a self-employed individual and I feel like I am not utilizing all the opportunities for tax optimization. I am unsure about the tax regulations and possibilities available for self-employed individuals like myself to reduce my tax burden.
I have heard that there are various options, such as depreciating work-related items, deducting training expenses for tax purposes, or utilizing tax benefits for self-employed individuals. However, I am unsure if I am fully taking advantage of these opportunities and if there are other tax-saving possibilities for me.
That is why I am reaching out to you for advice. Could you please explain to me the specific tax measures and strategies that I, as a self-employed individual, can take to save on taxes? Are there any special regulations or tips that I should consider to reduce my tax burden?
I am looking forward to your assessment and advice on how I can save taxes as a self-employed individual and I thank you in advance for your support.
Sincerely,
Rolf Hofstetter
Dear Mr. Hofstetter,
Thank you for your inquiry and your interest in tax optimization possibilities as a self-employed individual in the IT industry. As a tax lawyer, I can provide you with some tips and measures that can help you reduce your tax burden.
First and foremost, it is important that you carefully document all work-related expenses and claim them for tax purposes. This includes, for example, the depreciation of items used for work such as computers, software, or office furniture. These can be deducted from taxes over the useful life of the item and thus reduce your tax burden.
Furthermore, you should ensure to claim training costs as business expenses if they are work-related. Further education and training that benefit your role as an IT entrepreneur may be tax deductible and therefore reduce your tax burden.
As a self-employed individual, you also have the opportunity to take advantage of various tax benefits. These include, for example, tax relief through the application of the small business regulation, the possibility of investment allowance deductions, or the use of tax incentives for research and development.
To further optimize your tax burden, I also recommend regularly reviewing your tax situation and potentially working with a tax advisor. They can provide you with specific tips and strategies to minimize your tax burden and avoid tax risks.
Finally, I would like to emphasize the importance of always acting within the legal framework and not choosing tax arrangements that could be interpreted as tax evasion or tax avoidance.
I hope this information is helpful to you and I am available for any further questions.
Best regards,
Ulrike Voss, Tax Lawyer
