Freelancer taxation varies dramatically by country. Essential rules for self-employed tax in the US, UK, Germany, and other major markets.
Freelancer taxation differs enormously by country. Here are the key rules for major markets.
Self-employment tax: 15.3% (Social Security + Medicare) on net income.
Income tax: Ordinary rates on self-employment income.
Effective combined rate at $80,000: approximately 25-30%.
Quarterly estimated payments: April 15, June 15, September 15, January 15.
Key deductions: Home office, health insurance (100%), retirement contributions, all business expenses.
Class 2 NI: Flat rate above small profits threshold.
Class 4 NI: 9% on profits between lower and upper limits, 2% above.
Income Tax: Same bands as employees.
Self-Assessment due: January 31 each year.
Freiberufler status available for certain professions: lower administrative burden.
Einkommensteuer: Progressive rate 14-42%.
VAT: Kleinunternehmer exemption below 22,000 EUR.
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