What happens if I want to work as both self-employed and employed?

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The question "What happens if I want to work as both self-employed and salaried?" refers to a situation of multiple employment, that is, when a person contributes to both the General Scheme (as an employee) and the Special Scheme for Self-Employed Workers (RETA).

Is it possible to work as a freelancer and as an employee at the same time?

Yes, it's completely legal and common. You can combine both activities, as long as you comply with the tax and contribution obligations of both regimes.

How are contributions for multiple activities managed?

As an employee, your employer will be responsible for paying your contributions to the General System. As a self-employed worker, you will be responsible for paying your RETA contribution.

Are there any bonuses for self-employed workers with multiple jobs?

Yes, in your first few years as a self-employed person, you can benefit from discounts on your Social Security contributions:

Progressive reduction of the self-employed fee:

• First 18 months: You can pay 50% of the minimum contribution base.
• Months 19 to 36: You can pay 75% of the minimum base.

How does it affect contribution and benefit bases?

Both contributions (salaried and self-employed) are combined. This can be beneficial in calculating future benefits such as retirement, disability, or unemployment.

If you exceed certain contribution limits (set annually by Social Security), you can request a refund of part of the contributions you paid as a self-employed worker.

What about taxes?

You must include your income as an employee (withholdings already made by the company) and as a self-employed person (personal income tax installment payments) in your annual income tax return.

Both incomes add up and can cause you to move up a tax bracket in your personal income tax, which means paying a higher percentage in the higher brackets.

What additional tax obligations do I have as a self-employed person?

In addition to income tax, you'll need to file VAT returns (if applicable to your business) and other tax forms such as Form 130 or Form 303.

In short, working as a freelancer and an employee simultaneously is possible and can be advantageous in terms of future benefits, but it requires meeting the specific obligations of both regimes. Organization is key! 😊