More and more young people are earning money online these days – creating content, collaborating with brands, or running their own online projects. However, this raises the question: how to properly account for the income of a minor creator, and who should file a tax return? This issue, while seemingly straightforward, requires understanding a few key principles.
Who settles the income of a minor?
Income earned by individuals under 18 years of age generally must be reported to the tax authorities. However, who is required to do so depends on the type of income.
If a teenager earns income from rent, property rights or investments, the obligation to settle the income rests with the parents - this income must be reported in their annual tax return (PIT).
On the other hand, if a young person earns income from a contract of mandate, an employment contract, or runs their own business, they should file their own personal income tax return. However, it's important to remember that such a return must be signed by a parent or legal guardian.
Economic activity of minors
It's worth noting that teenagers can run a business from the age of 13. In this situation, they pay taxes according to the same rules as adults – they can choose:
- tax scale,
- flat tax,
- or a lump sum on recorded income.
Choosing the appropriate taxation method depends on the nature of the business and the level of income generated. Although in practice this requires parental support, formally, young entrepreneurs are subject to the same tax regulations as other business owners.
Summary
Taxing the income of underage internet creators requires careful consideration and knowledge of basic tax rules. Determining the source of the income is crucial – this determines who should account for it and how.
Do you have questions about settling the income of a minor creator or young entrepreneur?
Contact our office – we will help you determine the correct taxation method and ensure that all formalities are completed in accordance with applicable regulations.
