What tax should tutors pay? Key points

In recent years, the professional income tax, or “self-employed tax,” has become a popular tool for freelancers and private specialists, including tutors. It allows them to work legally without having to register as an individual entrepreneur or a legal entity, simplifying tax reporting and optimizing tax payments. However, it is important to remember the significant limitations that must be considered to avoid violating the law.

The key point when tutors apply the professional income tax is the type of education the student receives. Legislation permits the use of the professional income tax only when providing advisory services related to obtaining basic education. Basic education generally refers to school education, secondary vocational education, higher education, and other forms stipulated by state educational standards.

If, however, a tutor provides services “for adults” or “for oneself”—for example, teaching foreign languages, preparing for professional exams, conducting advanced training courses, and the like outside the framework of regular school, college, or university—then for such services it will be necessary to register a business entity.

To avoid tax problems and work legally, self-employed tutors should not forget to clarify, before starting work, what type of education the student is receiving.