How can I save trade tax as a freelancer?
February 9, 2022 | 35,00 EUR | answered by Eva Heuser
Dear tax consultant,
I am Laura Schlüter, a freelance graphic designer, and I have a question regarding trade tax. I have been self-employed for some time now and mainly earn my income through graphic design projects. Over the past few years, my business has been growing steadily and I have generated more revenue.
Now I am thinking about how I can save trade tax as a freelancer. So far, I have not delved deeply into this topic and would like to know what possibilities there are to reduce my tax burden. I want to make sure that I take advantage of all legal tax benefits and do not pay unnecessary taxes.
My concern is that I may be paying too much trade tax and this could negatively impact my financial situation. I would like to know if there are specific tax-saving models or strategies tailored specifically for freelancers like me.
Can you give me specific tips on how to save trade tax as a freelancer? Are there any expenses that I can deduct for tax purposes? What are the tax depreciation options available to me as a self-employed individual? I would greatly appreciate it if you could assist me with this.
Thank you in advance for your support and advice.
Sincerely,
Laura Schlüter
Dear Mrs. Schlüter,
Thank you for your inquiry regarding trade tax as a freelance graphic designer. It is good that you are thinking about how to reduce your tax burden in order to optimize your financial situation. I am happy to provide you with some specific tips and information on how you can save on trade tax as a freelancer.
First of all, it is important to know that freelancers are generally exempt from trade tax. This tax is usually only levied on business owners who have registered a business and earn income from business operations. However, as a graphic designer working freelance, trade tax does not apply in your case.
Nevertheless, there are also ways for freelancers to save on taxes and deduct expenses for tax purposes. Some of the most important tax-deductible expenses include office supplies, professional literature, further education, work equipment such as computers and software, rent for workspaces, phone and internet costs, as well as travel expenses related to professional activities. You can claim these expenses as business expenses in your income tax return and thus reduce your tax burden.
Furthermore, freelancers have the opportunity to take advantage of various depreciation options. These include linear depreciation for acquisitions such as office furniture or computers, declining balance depreciation for low-value assets, or the depreciation of intangible assets such as software licenses. By utilizing these depreciation options, you can further reduce your tax burden.
It is also advisable to regularly seek advice from a tax advisor to ensure that you are optimizing all tax benefits and not paying unnecessary taxes. A professional tax advisor can provide you with individual tax tips tailored to your specific situation and help you minimize your tax burden.
I hope that this information is helpful to you and that you can improve your financial situation through targeted tax-saving measures. If you have any further questions or would like personal advice, I am happy to assist you.
Best regards,
Eva Heuser, Tax Advisor
