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In Ukraine, IT Freelancing Under Threat
An anonymous reader writes "According to the new tax law (Google translation; Russian original) that is being developed now and should take effect on January 1, 2011, it will not be possible for a private Ukrainian entrepreneur to provide any services to foreign companies without becoming a full-fledged company with a dedicated bookkeeper. Currently it is possible to perform such services and pay the equivalent of $25 in tax. Instead of raising the tax (which is overall welcomed by the community), the legislators plan to outlaw ISP, e-commerce, and Internet-based services — along with any services provided to foreign entities — for individual entrepreneurs. So starting in 2011, freelancers in Ukraine will have several choices: stop doing freelance work, start working illegally, become a full-fledged company subject to multiple cumbersome rules for taxation, or leave the country."
>>>"Today, one of the most complicated taxation-systems worldwide is in Germany. [citation needed]. "
Fixed. You accidentally(?) failed to quote the whole wikipedia entry. There's no reference, so that sentence in wikipedia has no more value than an opinion. You proved nothing.
As for the need to incorporate, we have the same flaw in the United States. You don't have to but the onerous regulations basically force people to form a corporation in order to survive. And of course a bookkeeper is mandatory unless you want to risk an IRS inquisition..... er, I mean audit.
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