Commission
February 1, 2016 | 30,00 EUR | answered by Peter Lipp
If I work for another company as a salary recipient and receive commission for my work from there, how do I have to pay taxes on it - at the end of the year with a tax return or income tax declaration, or do I have to register my own company for this?
I receive a receipt from the company providing the commission for the amount plus VAT...how do I handle this?
And how will the tax be calculated for me - salary plus commission and then tax on that?
What is the best option for me in this situation?
Dear questioner,
In assessing the situation, it is important to consider your contractual obligations with the second company. If you are not treated as an employee there, you must notify the tax office of starting a self-employment or commercial operation. Having only one client may lead to being classified as a self-employed individual similar to an employee.
Since the company provides you with a commission statement including VAT, you are required to remit this to the tax office. This is done through monthly VAT returns.
At the end of the year, the profit from this activity needs to be determined and is subject to your personal income tax rate.
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