Luca
3.4K posts

Luca
@lc_fd
Freelance dev ~ Django, React, htmx • I made https://t.co/DTdWwepevL and NaryaVim • ❤️ climbing, ttrpg, chess
Trento, Italy เข้าร่วม Temmuz 2014
605 กำลังติดตาม502 ผู้ติดตาม

In 2023, I paid 100% in taxes + social contributions on my $150k/year income.
This story is horrifying, and I want you to know how to avoid it ❌
In 2022, I received an interesting offer to work for a USA-based startup as a contractor software engineer working from home, for $150k/year.
It looked like an irresistible offer.
To work for a foreign company, without a legal entity in your country (Italy in this case), you need to create a company or be an autonomous worker (it's called “Partita IVA”).
Other options involve even more bureaucracy and expenses, so, with the suggestion of a professional accountant, I opted for the autonomous worker setup.
I started working in June 2022. Every month I sent an invoice to the company for my services. They always paid on time. All good.
I did my research, and I found that the social contribution is 26% of the income.
Taxes are 40% after the deduction of the social contributions (it's more complex than this, but I'm simplifying).
I started in June, therefore in 2022, I earned ~€90k. Social contributions: ~€25k
Taxes: ~€22k
Total: ~€47k
It's a huge sum, half of the total net income, but it's what I was expecting.
In the meantime, the accountant kept saying to me "In June you'll pay a big sum", and I wasn't surprised: €47k is a huge sum!
But after the calculations, the accountant communicated the final sum: €100k
To pay in two parts, 70% in June and 30% in November.
As you can imagine, I was shocked.
€90k earned, €100k to pay.
How's that possible?
Simple: down payments.
Every year, we pay social contributions and taxes twice (multiply by 2 the calculated sum).
Isn't this system completely crazy?
Paying taxes and social contributions on money that you haven't received yet, and you don't know if you'll earn enough?
In my case, I had a stable income, but this setup is used by freelancers and professionals, who usually DON'T HAVE a stable income.
I’m not writing this to complain about high taxation and social contributions in Italy, I want to highlight that the system is poorly designed, and doesn’t help autonomous workers / freelancers / indie hackers / creators to run a business (which is risky by definition).
So these are the lessons I learned
For complex topics like taxation and social contributions, I found partial information online.
When I searched for taxation, I didn’t find the social contribution part, and vice versa, and I’ve never read of the down payments.
So, try to read the official documentation if possible (it will take a long time, but it’s worth it).
Don’t rely too much on accountants, they tell you what they want you to know.
If I had known this, I would have searched for an alternative solution, like an Employer of Records, but the accountant would not have provided me with any services (I pay them €2k/year instead).
This bad experience applies to Italy, your country might be (and I hope it is) much better in this regard.
Moving to a more entrepreneur-friendly country might be an option too (quite a painful one).
As always, I hope that sharing this experience helps you.
Take this story with a grain of salt, it is valid in my context, but might not apply to yours.
And inform yourself as much as you can. Don't rely on others for key aspects of your life, like money, taxation, investments, and so on.
Cheers.
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Intriguing 🤔
I want to see the talk before trying it. It's hard to tell if it's helpful or if it adds bloat and problems. It's in the early stage, just presented, it's too soon to say something.
simonwillison.net/2024/Sep/25/dj…
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I love django-cotton by @willrabbott!
It's allowing me to create components without endless configurations. It's a young project, but it's improving quickly.
Give it a try, and leave a star ⭐
github.com/wrabit/django-…
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Amazing! The uv team shipped first class support for Python projects that are not designed as packages (think Django aplications!).
They even switched some defaults around to better support this use case! 💚
github.com/astral-sh/uv/r…
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@patrick91 @nextjs If it's mounted outside the routing it can be the expected behavior, no? 🤔
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Is it expected that `router.push` doesn't unmount a modal (which uses intercepting and parallel routes) in @nextjs?
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Django turned 19 years recently 🥳🥳🥳
Happy birthday Django 💚
And you, if you are a Django user or a contributor, are you older or younger than Django?
#django
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@lc_fd Somebody is already working on it: github.com/litements/lite… 😄
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