Taxing money through partnership?
Hi, this is a bit of a tricky situation. I'm a software developer and recently received an offer from someone who wants to develop a piece of software with me. This person has a lot of experience in the field, and I'm more of the person capable of implementing the software. The problem is, I'm employed full-time, and this person doesn't want to hire me. He wants to do it together, in a partnership, of course. However, since I have to develop everything, he unfortunately only has a limited say. Therefore, he wants to pay me, as an "investment," so to speak. This way, if it's ever published, he gets a share of the profits.
The big question now is, how exactly do I handle this money? I'm not self-employed, nor am I employed by him, and our contract is a written contract that simply states that he's giving me money, and a few things like who has what rights, etc. Am I now a type of freelancer? It's not like I'm selling him anything or offering my services, is it?
I hope someone understands my problem and can give me a good answer. I'm sure it would be best if I contacted the tax office anyway.
(2 votes)
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At first glance, all this sounds like a professional (possibly self-employed) activity. Whether you are your contractor and your partner is your client or you are a GbR depends a little bit on your contractual structure/situation.
He pays you for the programming and on the resale of the software you don’t deserve anything since you actually have 2 individual entrepreneurs. If you are also involved in resale, this looks more like a GbR (or what legal form you choose).
You must register this activity to the competent municipality in accordance with §138 AO. This is reported to the tax office. You will be asked to fill out a questionnaire for tax collection (FsE) and forward it electronically, so you can also make it parallel. Accelerates the procedure in a general way (if it should actually be self-employed according to §18 EStG, the registration with the municipality is omitted)
The tax office will then check the inputs and assign a tax number. Since you’ve been on marketplaces like eBay, you need a USt ID to prove that you’re taxed, this can be applied directly with FsE.
If you expect more than €2,000, the small business operator scheme according to §19 UStG is not eligible. If you’re not a small businessman, you have to go on 10. Upon expiry of the pre-registration period, the sales tax pre-registration is issued to the tax office.
No matter how in the end, you will have to submit your income tax declaration annually and with Appendix EÜR, depending on the approach of the FA, also the VAT Declaration and USt Declaration. If you represent a GbR (e.g.) because it must make a statement of observation (here the EÜR instead of in the income tax statement).
If you do not register your business, this is an offence.
Just make a fixed price.
This can be done in a relatively simple way.
It would be normal income, which would be taxable.
You don’t have to register for this.
Because it’s not long. It’s a one-time thing.
If he gives you the money in cash or in valuables, such as gold bars or something, no one usually notices what. The problem is that your “contract” is probably not valid. If he’s gonna ******, you can look through your fingers. You don’t have a handle against him. You know the saying: “For money, friendship stops.”
At least one lawyer would have to examine this and, above all, a company participation must also be certified as notarially as far as I know. Then you will definitely light up with the authorities and you have all the rights and obligations and advantages and disadvantages of a self-employed person.
I doubt it. Just because you do an independent job. This can be freelance or commercial.
In addition to your permanent appointment, you can easily operate independently. If necessary, this may be allowed to be blessed by the employer, depending on the employment contract.
Civil law could be a service contract with profit participation (Jurists like me here) or, as described by anTTraXX, a GbR. An atypical silent participation in your individual company would also be conceivable. A corresponding contract would be necessary for the latter, whereas a GbR is often created by appropriate action. The assessment now actually depends on the concrete agreements and on what you both really want.
The tax authority may answer a specific question, but it must not advise. Here would be a tax advisor to consult.