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Paying for pension when working as freelancer
Posted on 21.12.2007 08:59
Paying for pension when working as freelancer
Hi All,
Do I have to pay for the pension even I am working as a freelancer?
Why -->
- My income is coming from one company only (As a IT freelancer it is common, is it??). So I am not a so called true freelancer but more like an employee.
Any information on this topic is greatly appreciated.
Regards,
Rajnish
rajnish_ban
Member since 04.08.2004
Posted on 21.12.2007 09:48
Re: Paying for pension when working as freelancer
@rajnish
What i know is , if you are a freelancer then you do not pay Pension. As your case is somewhat mixed and complicated you better contact a Taxlawyer.
IF you are a freelancer then you need a tax number. and you will be paid only for the time you work.
Rgds
Savio
savion
Member since 23.04.2004
Posted on 21.12.2007 11:37
Re: Paying for pension when working as freelancer
Hi Rajnish,
you are right! Your position is very dangerous, for you and also for your employer. I would say mostly for your emplyoyer, because he has to take care that all his employees pay their social contributions and the salary taxes. And if you have only 1 client, it is possible, that they do not accept your selfdependent status and that they (the tax authorities) say you are 'Scheinselbständig', which means you pretend to be selfdependent but you are not, because you depend completely on this 1 client/company.
The worst thing is, that this can go for years and then you or the company will have an external audit (Betriebsprüfung) and they want to get all the money from the past years!!
So I agree with Savion and I strongly recommend to consult your tax adviser.
Good luck
Detlef
trust7
Member since 23.09.2004
Posted on 21.12.2007 15:57
Re: Paying for pension when working as freelancer
Thank you for your response ...
I have a tax number as freelancer and working via middle company (lets say A), which has several different customers.
To clear my position -->
-I have legal signed contract with A.
-I have no legal signed contract with end customer but A has.
-I send invoice to A and then A send their own invoice to company where I am providing my services.
-End customer does not pay me in any way.
-I get paid by A.
Marry Christmas and prosperous New Year.
Best regards,
Rajnish
rajnish_ban
Member since 04.08.2004
Posted on 22.12.2007 19:14
Re: Paying for pension when working as freelancer
I think its not a "must" that you pay Rente, however, you may contribute. And you get better conditions with private Rente companies than the Federal state.
rgds,
xadnan
xadnan
Member since 26.09.2004