The paper is designed to present the legal regulation of income taxation of self-employed attorney. For tax purposes, the attorney who carries out the activity is an individually self-employed person, namely, a person who pursues an independent professional activity.
An individual who intends to pursue independent professional activity is obliged to register with the supervisory authorities at their place of residence as self-employed persons. If a person is registered as an entrepreneur and at the same time this person carries out an independent professional activity, such an individual is accounted for the controlling bodies as an entrepreneur with a sign of pursuing the independent professional activity.
Income received during the calendar year from conducting independent professional activity is taxed on the personal income tax at the rate of 18%. Taxable income is the cumulative net income, that is the difference between the income and the documented expenses required to pursue a certain type of independent professional activity. Individuals engaged in an independent professional activity are obliged to keep records of income and expenses from such activity.
In addition to the personal income tax, attorneys also pay a military levy and a single social contribution.
Discussion issues in the enforcement of tax law were distinguished: the issue of taking into account expenses in determining taxable income for taxation of income received by an attorney, as well as problem of payment of the single social contribution in the case of combining business activity and independent professional activity. In this situation, the tax authorities believe that the taxpayer must pay a single social contribution twice as an entrepreneur and as a person who provides independent professional activity. Courts often support taxpayers and confirm that a person should only pay a single social contribution as an entrepreneur. Tax authorities’ explanations remain unchanged.
To avoid double taxation and to ensure the implementation of the principles of tax law, in our opinion, this issue needs attention from the tax authorities and an up-to-date analysis tax legislation.
SUMMARY OF SOME FEATURES OF THE FEDERAL AND STATE INCOME TAX LAWS AND OF THE MODEL PERSONAL INCOME TAX LAW PROMULGATED BY THE NATIONAL TAX ASSOCIATION