Valentine 6 years ago
Hello ! I have a question about the taxation of distributors of MLM companies, for example, a distributor conducts business with an MLM company at his own pace, then he receives income, then he does not receive, he also has his own expenses on the business, for example, in some MLM business, you need to buy products monthly for a certain amount, otherwise there will be no passive income.
Or you need to talk to the candidate and the distributor invites him for an interview, pays the bill in the cafe.
How exactly is this income taxed?
Do I need to issue a ZZP or can I just indicate my annual income and expenses in the company in the tax return?
And will this income affect the amount of subsidies from the tax?
Does the amount matter or is everything taxed the same?
Thank you for your cooperation, sincerely Valentine.
addiction Admin 6 years ago
Hello Valentine,
The activities of a distributor are ordinary business activities.
It can be practiced with or without a ZZP.
If your income is episodic and not large (less than 10 thousand per year), then most likely there is no point in registering. In this case, income must be shown in the declaration as “income from other work.” Expenses can be deducted there.
If the incomes are more or less regular and bring tangible profits, then it is much more profitable to register.
The registration is also important as confirmation of employment for a subsidy for a kindergarten, for example.
In both cases, income affects subsidies. The higher the income, the lower the subsidy. But this influence begins when the minimum income has already been exceeded (about 18 thousand per year).
Tax rates are different and there are tons of tax breaks as well, making small incomes almost tax-free.
To find out the exact numbers, you can order a “trial calculation” service from us. You can also sign up for a consultation to find out all the details.
Good luck with your business
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