As a freelancer, you do not have to pay trade tax. However, caution is advised with partnerships.

The tax office only recognizes these companies as self-employed if all partners work on a self-employed basis.

Now there is good news for freelance partnerships

The Federal Fiscal Court has ruled that a partnership run by dentists remains self-employed even if one of the doctors is mainly responsible for organizational and administrative tasks!

The tax office had previously classified the company as a commercial enterprise. However, the federal judges argued that the Income Tax Act does not stipulate a minimum scope for an "externally directed qualified activity". Furthermore, the commercial management and organization of the company was the basis for the provision of dental services on the market.

This judgment may also be of interest to you if you are involved in another freelance association, e.g. as an engineer, architect, lawyer or translator!

You are not a freelancer yourself?

Then feel free to share this article with the freelancers among your friends and acquaintances!

👉 Do you have any questions and are you looking for a competent tax expert? Get in touch with us. We at WSB will be happy to assist you and help you with your tax questions and concerns: www.wsb-berater.com/leistungen

#Freelancer #Trade tax #BFHRuling #Personal partnership #TTax consultancy #WSB