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Poll: What percentage of your translation income goes to taxes?
Thread poster: ProZ.com Staff
ProZ.com Staff
Local time: 07:38
SITE STAFF
Mar 30, 2009

This forum topic is for the discussion of the poll question "What percentage of your translation income goes to taxes?".

This poll was originally submitted by Lorenia Rincon

View the poll here

A forum topic will appear each time a new poll is run. For more information, see: http://proz.com/topic/33629


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Francesca Pesce  Identity Verified
Local time: 16:38
Member (2006)
English to Italian
+ ...
A missing option Mar 30, 2009

I would say between 40 and 50%. (sigh)

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Gianluca Marras  Identity Verified
Italy
Local time: 16:38
Member (2008)
English to Italian
Italy's the wrong place for a freelancer Mar 30, 2009

Well,

if you translation is worth € 100
your client will pay for you 20% for taxes before giving you the remaining 80%,
then you pay for your social security (a percentage ranging from about 18% to I don't know according to your income), so a minimum 40% is gone, then in July you pay your taxes, which usually take another 15% to be added to the previous 20% you ha already paid. So for € 100 you get 45. Nice ,isn't it?

In Italy someone says that when you have your own business you have a partner you didn0t choose and who gets 70% of what your business produces: the State.


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Oleg Osipov  Identity Verified
Russian Federation
Local time: 17:38
English to Russian
+ ...
In Russia Mar 30, 2009

6% from the total gross income.


[Edited at 2009-03-30 12:47 GMT]


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xxxInterlangue
Angola
Local time: 16:38
English to French
+ ...
Better elsewhere in Europe? Mar 30, 2009

Gianluca Marras wrote:

Well,

if you translation is worth € 100
your client will pay for you 20% for taxes before giving you the remaining 80%,
then you pay for your social security (a percentage ranging from about 18% to I don't know according to your income), so a minimum 40% is gone, then in July you pay your taxes, which usually take another 15% to be added to the previous 20% you ha already paid. So for € 100 you get 45. Nice ,isn't it?

In Italy someone says that when you have your own business you have a partner you didn0t choose and who gets 70% of what your business produces: the State.


Of what the clients pay me (except for international organisations, which do not pay VAT), 21% is VAT, ± 50% goes for income tax and you must add another ± 30% for social security.


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David Earl  Identity Verified
United States
Local time: 08:38
Member (2007)
German to English
None, however it's a point of view issue Mar 30, 2009

Frankly, I don't count the VAT that I collect on behalf of Germany as "my income". It's simply a pass-through item that I collect on the basis of my income. Of course, at the end of the year, the tax consultant tells me what I owe in terms of income tax, but that's not VAT.

LOL, I'm sure someone somewhere has tried to bill their gov't for their efforts on the gov't's behalf as a tax collector. I doubt they got very far with it. File under "pipe dream", right?


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Gianluca Marras  Identity Verified
Italy
Local time: 16:38
Member (2008)
English to Italian
I didn't say anything about VAT, but Mar 30, 2009

Interlangue wrote:

Gianluca Marras wrote:

Well,

if you translation is worth € 100
your client will pay for you 20% for taxes before giving you the remaining 80%,
then you pay for your social security (a percentage ranging from about 18% to I don't know according to your income), so a minimum 40% is gone, then in July you pay your taxes, which usually take another 15% to be added to the previous 20% you ha already paid. So for € 100 you get 45. Nice ,isn't it?

In Italy someone says that when you have your own business you have a partner you didn0t choose and who gets 70% of what your business produces: the State.


Of what the clients pay me (except for international organisations, which do not pay VAT), 21% is VAT, ± 50% goes for income tax and you must add another ± 30% for social security.


Well, if als have VAT (20%). Well I can see it isn't easy...


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xxxLatin_Hellas
United States
Local time: 16:38
Italian to English
+ ...
US still tax haven, sort of Mar 30, 2009

I pay slightly less than 20% of gross revenues, the bulk of which social security and medicare. There are so many deductions and income tax rates are so low that income taxes in the strict sense come to around 7%. It also helps to live in a state with no state income tax.

Having said that, US residents pay surreptitious taxes to private corporations, like to health insurance companies in the form of premiums, and the banks by having their savings depleted through the shenanigans in the financial markets.

And of course local property taxes are another story, but there is no direct relationship to income.


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Michaël Temmerman  Identity Verified
Costa Rica
Local time: 08:38
English to Dutch
+ ...
Belgium is a nightmare Mar 30, 2009

After taxes (the highest tax rate is about 50%) and social security (around 25%), a freelancer gets to keep around 30% of his or her gross income.

VAT is 21% but of course that's not to be taken into account as you don't lose any money with it. On the contrary even, you get back part or all of the VAT on business expenses you make.


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Marie-Laure Matissov  Identity Verified
France
Local time: 16:38
Russian to French
+ ...
What does the word "taxes" include for answerers to the poll? Mar 30, 2009

To really appreciate the result of this poll that would be interesting to know what
people did understand by "taxes" when they answered to this poll. In fact, as far as I am concerned, before answering, I was wondering if the word "taxes" included all the charges for social security, complementary/professionnal insurance, pension as well as income taxes.
Without the answer to this question, it is hard to compare our situations with others' and the poll does not mean a lot...
Because when people answer 6%, I think that it does not include all these charges that I have taken into account in my answer... In France, a Freelancer generally pay around 40% of his income for charges which do not include income taxes...
Thanks for your attention.


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Williamson  Identity Verified
United Kingdom
Local time: 15:38
Flemish to English
+ ...
In Flanders Fields: The tax-misery index.... Mar 30, 2009

Interlangue wrote:

Gianluca Marras wrote:

Well,

if you translation is worth € 100
your client will pay for you 20% for taxes before giving you the remaining 80%,
then you pay for your social security (a percentage ranging from about 18% to I don't know according to your income), so a minimum 40% is gone, then in July you pay your taxes, which usually take another 15% to be added to the previous 20% you ha already paid. So for € 100 you get 45. Nice ,isn't it?

In Italy someone says that when you have your own business you have a partner you didn0t choose and who gets 70% of what your business produces: the State.


Of what the clients pay me (except for international organisations, which do not pay VAT), 21% is VAT, ± 50% goes for income tax and you must add another ± 30% for social security.


-*-*-*-
See : worldwide taxes.com and http://www.forbes.com/global/2008/0407/060.html
Oh, island(s) in the sun.... Remember the trados publicity of the freelancer sitting in the sun with his laptop and.. tradossdlx.

For Americans : Don't confuse Eurocratic Brussels and Belgium. Eurocratic Brussels has another tax-regime of about 20% paid to the E.U. and not to the Belgian state.
-*-*-
For those who can read Dutch : http://inflandersfields.eu/2008/04/belgi-prijkt-op-derde-plaats-in-de.html

and for those who can't : look at the graph... no translation required.

Are there any translators from Malta here? Corporate-tax reimbursed.



[Bijgewerkt op 2009-03-30 14:51 GMT]


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Joan Berglund  Identity Verified
United States
Local time: 10:38
Member (2008)
French to English
probably a little less than 20% as well Mar 30, 2009

Latin_Hellas wrote:

I pay slightly less than 20% of gross revenues, the bulk of which social security and medicare.

I am also in the US, and I expect to pay about the same in Federal taxes plus social security. This pretty much what I understood by "taxes" in the question. I will have state income tax to pay as well. I think my state taxes are around 6% of net income, I am not sure what that works out to for my gross, I have not quite finished my taxes for this year - math is hard. I guess this is not too bad by European standards, but I do have to pay separately for my relatively crappy health insurance, since our government has no money left for national health after meeting their corporate welfare obligations.


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xxxLatin_Hellas
United States
Local time: 16:38
Italian to English
+ ...
Income taxes & pension and health contributions Mar 30, 2009

Joan Berglund wrote:

I am also in the US, and I expect to pay about the same in Federal taxes plus social security. This pretty much what I understood by "taxes" in the question.

I guess this is not too bad by European standards, but I do have to pay separately for my relatively crappy health insurance, since our government has no money left for national health after meeting their corporate welfare obligations.


In some European countries there may be additional "payroll taxes" taken from freelancers, such as contributions for unemployment insurance, disability insurance, I'm not sure. But generally speaking, I understand the question to mean taxes taken as a calculation of revenues from a business/profession as a sole proprietor. So in the US that means income taxes & social security and medicare, plus whatever state income tax and even municipal income tax in the case of a few cities, like New York, I believe. Otherwise, other taxes are not based on revenues, but on property, consumption and use.

I too have really crappy health insurance, paying a $250 per month "tax" to a health insurance company, good basically only for unexpected emergency hospitalization, otherwise I go to a "third world" country for basic health care, receiving about the same services at 1/7 the price, and much, much better quality in human terms.

It would be interesting to know whether European colleagues feel that they are receiving value for their tax payments. For example, public train service in most European countries is excellent, certainly by US standards where, on the whole, it is insignificant, or health care: France and Italy, according to some surveys, have the best health care systems in the world. But how do our European colleagues really feel about that?


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Lori Cirefice  Identity Verified
France
Local time: 16:38
French to English
Value for my money Mar 30, 2009

Latin_Hellas wrote:

It would be interesting to know whether European colleagues feel that they are receiving value for their tax payments. For example, public train service in most European countries is excellent, certainly by US standards where, on the whole, it is insignificant, or health care: France and Italy, according to some surveys, have the best health care systems in the world. But how do our European colleagues really feel about that?


In short, Yes. As an American ex-pat in France, I think that the high taxes are worth it - mainly the health care.

When I say taxes - I am thinking of both income taxes and payroll taxes (social security/health care, retirement, unemployment, various social contributions, etc. - everything that is mandatory and directly related to my earnings).


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Jocelyne S  Identity Verified
France
Local time: 16:38
Member
French to English
+ ...
I don't really mind - it's in the price Mar 30, 2009

Latin_Hellas wrote:

It would be interesting to know whether European colleagues feel that they are receiving value for their tax payments. For example, public train service in most European countries is excellent, certainly by US standards where, on the whole, it is insignificant, or health care: France and Italy, according to some surveys, have the best health care systems in the world. But how do our European colleagues really feel about that?


Although I think that most of "Social Europe" is in the process of scaling back its public services and increasingly thinking about privatisation, I still very much appreciate the health care system here in France and it really does not bother me in the least to pay taxes for it.

Almost everyone loves to complain about taxes, but I do believe that, in the case of health care at least, it is not a bad system comparatively speaking.

Generally, I don't mind paying for public services (although I'm not too happy about the portion of my taxes that goes to funding wars and other repressive exploits).

In any case, I calculate the amount of taxes I pay into my rate as I imagine that most of us do.

I would be interested in those who claim not to pay any taxes: is it legal and/or do you have the same rights/benefits as taxpayers (health care, pension, state schools, etc.)?

Best,
Jocelyne


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