3 ms·
> everyone works as a consultant to avoid the high taxes You mean, to avoid the social security fees (health/pension/unemployment/…)? After all, as a consultan
by codethief 5y ago
> everyone works as a consultant to avoid the high taxes
You mean, to avoid the social security fees (health/pension/unemployment/…)? After all, as a consultant (whether incorporated or not) you still need to pay taxes and the rates are pretty similar to tax rates for employees.
- Joeri 5y agoThe people that I know that are self-employed and earning high incomes generally are incorporated and have an accountant to set up tax avoidance strategies to have a lower effective tax rate. Effective tax rates seem to follow a gauss curve, low at the bottom, low at the top, highest for the middle earners.
- distances 5y agoThat'll vary by country and won't be efficient everywhere in Europe. Certainly in Germany freelancers pay the same taxes as regular employees, and setting up a company means more taxes, not less.