In an employment relation, worker continuously carries out work in person according to the instructions and under the control of the employer.
If a contract between two independent parties (i.e. company and sole proprietor) is carried out in a similar way as in an employment relation, payments from this contract to the proprietor can be taxed the same way as net salary of a non-registered physical person.
Income tax act has just broad instructions for defining contracts, similar to employment relations. We advise employers not to close contracts which could be defined as similar to employment relations contracts.
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