LEGAL STATUS OF SELF-EMPLOYED PERSONS IN GERMANY

Abstract

Purpose. Systematic analysis of theoretical and legal foundations, regulatory and legal regulation, financial and reporting and social security aspects of the functioning of the institute of self-employment in Germany, as well as a detailed definition of the legal status of foreign citizens, in particular Ukrainians under temporary protection, who start or conduct their own entrepreneurial activity in this European jurisdiction. Methods. The study used a complex of general scientific and special legal methods. Systemic and structural analysis allowed us to study the decentralized system of German tax and social legislation. The comparative legal method was used to clearly distinguish commercial activity and liberal professions. The formal and dogmatic method was used in the direct study of specific provisions of the Income Tax Act, the Social Code and the Law on the Stay of Foreigners. Results. The substantive and legal criteria for distinguishing commercial activities and liberal professions are studied, with the specifics of their registration in agencies and fiscal accounting through the ELSTER system being determined. The taxation system is characterized, including progressive income tax, trade tax and VAT with limits for small businesses up to 25,000 euros. The mechanisms for protection against fictitious self-employment, controlled by German pension insurance to prevent hidden employment, are highlighted. The features of the provision of state aid (employment subsidies and grants up to 5,000 euros) and financial monitoring using declarations of projected income are identified. It is proven that citizens of Ukraine with temporary protection have full legal access to self-employment if they have a residence permit or a fictitious certificate with a mark on employment permit. Conclusions. The German model of legal regulation of self-employment demonstrates a high level of structuring, combining financial control with effective mechanisms of social support and business adaptation. For foreigners, in particular Ukrainians, a favorable permit regime for integration into the national labor market has been created through clear legislative preferences, which at the same time requires entities to carefully comply with the procedures for registration, licensing of regulated professions and financial reporting.