Freelancer or business owner?

Unlike business owners, freelancers do not pay trade tax, can calculate their profits using the net income method, are not required to maintain double-entry bookkeeping, and are not required to be members of a Chamber of Industry and Commerce.

A freelancer provides high-level services on a personal, independent, and professionally autonomous basis, drawing on special professional qualifications or creative talent. This includes:

• Healthcare professions, such as physicians, dentists, veterinarians, alternative practitioners, physical therapists, midwives, massage therapists, and licensed psychologists

• Legal, tax, and business consulting professions such as attorneys, patent attorneys, notaries, certified public accountants, tax consultants, and consulting economists and business administrators

• Scientific and technical professions such as surveyors, chemists, architects, pilots, and experts

• Cultural professions such as journalists, photojournalists, interpreters, all types of scientists, artists, writers, teachers, and educators.

This also includes similar professions whose job requirements correspond to those of the professions listed above. The essence of the activity is the business owner’s personal responsibility. This does not mean that he or she may not make use of the assistance of professionally trained staff. However, in such cases, the prerequisite is that the owner acts in a managerial and independent capacity based on their own professional expertise. In the event of a temporary absence, they may, however, have someone act as their representative.

Characteristics of a self-employed professional

A typical characteristic is an academic or other higher education. The primary source of income is high-level knowledge and experience. The focus of the activity is on service provision and the owner’s personal involvement. Since new professional profiles are constantly emerging, it is not possible to provide an exhaustive list. In cases of doubt, a formal inquiry to the relevant tax office is helpful.