Income from copyright contract is every income that does not come from an employment relationship. When a person wants to generate additional income to the one from his employment contract, there are several ways to proceed. Also, if you do your business in Europe through company registration in Slovenia, you can cooperate with individuals for their services through copyright contract.
Data d.o.o. is one of the leading providers of support to entrepreneurs who start their business in Slovenia. Our legal team can make sure that the contracts that you conclude with private individuals or legal entities are in accordance with Slovenian legislation. Additionally, we provide accounting services and tax consultation, also relating to income of companies as well as natural persons.
What is a copyright contract and who can you conclude it with?
There are several ways you can outsource parts of your service to subcontractors. As a company in Slovenia, you can conclude a contract with a natural person through copyright agreement. The income that persons can generate from the copyright agreement can be student work, religious work, work through service contract.
Generating income from copyright contract and personal income tax
When a person does a task through copyright contract, they also have to pay taxes on it. When providing this service, you will have to calculate an advance payment of personal income tax, which is at 25%. The tax base represents the gross income, reduced for the amount of mandatory social contributions and 10% normalized expenses.
This type of income has to be included in the yearly scale of personal income tax. Additionally, the copyright contract has to include a contribution for health insurance. 6,36% from the gross income will burden the author, while 0,53% of this amount is paid by the recipient of the service. In addition, the Disability and Pension Insurance Act determines the payment of contributions of 15,5% of gross income by the author and 8,85% by the recipient of the service.
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Specifics with advance payments for personal income tax of students
It is possible that you also engage a student to provide services to your company. With them, there is no advance payment of personal income tax in cases, where the individual payout does not surpass 400€. The advance payment of personal income tax from other contractual relationships of residents is also not paid if it does not surpass 20€. But the income is still a part of the yearly tax base.
Copyright contract – who can claim travel expenses?
Any individual, who receives income from copyright contract, can also claim travel expenses in addition to the normalizes expenses. The government determines the amount of travel expenses which you can claim. You would have to submit proof of these expenses. The recipient of the income can claim reimbursement of travel expenses if they receive a payment from a non-taxpayer (foreign buyer). In that case you can claim the travel expenses through the advance payment tax return for income of copyright contract.tr
A non-resident can also claim travel expenses from the income they generated through copyright contract. In this case the payer of the service has to calculate and submit the withholding tax. They have to take into account the 10% normalized expenses.
A resident can also claim the travel expenses by preparing an informative calculation or submit dispute to the calculation of personal income tax. You can do that in case you received the income from the copyright contract from a taxpayer, who has calculated and paid the withholding tax, taking into account 10% normalized expenses.
Register a company in Slovenia and start your business in Europe!
There are several ways in which your company can engage in cooperation with other companies and individuals. You can sign cooperation agreements between two legal entities, copyright contracts or service contracts. If someone provides services for your company over a longer period, you can also decide to employ them. You can achieve that by signing the employment agreement and pay them monthly salary for their services.
For more information on company registration in Slovenia, EU, send us an e-mail to data@data.si. You can also contact us over the phone 00386 1 6006 270 or 00386 40 530 718 (Viber, WhatsApp). You can also follow us on Facebook.
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