The long-awaited Instruction for applying the Independent Contractor Test from the Tax Administration has been (un)expectedly published on as much as 90 pages. Nevertheless, there’s no room for panic, as the Instruction abounds in examples and is written in a plain and legible language, which is what everyone has hoped for. The Instruction came just a few days before March 1, 2020. The Instruction aims to provide specific guidelines to tax inspectors while conducting tax audits, as well as to guide entrepreneurs and clients on what kind of behavior signalizes: “You failed the test”.
The following is an example from the Instruction that illustrates how the criteria in the Independent Contractor Test will be met in practice.