In this discussion, forum members are sharing their concerns and strategies regarding the DAC7 law and its impact on their work as webcam models. The DAC7 law requires certain platforms to report earnings, which has significant tax implications for the models. Here are the key points from the conversation:
- Tax Burden and Avoidance: Members are frustrated with the high tax rates in their countries, with some paying up to 50% of their earnings in taxes. Many are looking for DAC7-free platforms to avoid these taxes.
- Platform Reporting Practices: There's confusion about which platforms will report earnings under the DAC7 law. Some members have confirmed that platforms like Chaturbate will report earnings, while others like LoyalFans and SkyPrivate won't.
- Threshold for Reporting: There is a debate about whether platforms need to report earnings below 2000 euros or if having more than 30 sales (sessions) per year triggers reporting.
- Studio Work vs. Independent Work: Some members suggest working in a studio as a way to manage tax obligations, as studios may handle tax reporting for the models. Others are concerned that studios taking a cut of earnings complicates tax reporting.
- Expenses and Deductions: Members discuss the importance of tracking expenses to reduce taxable income. Costs such as internet, equipment, and rent can be deducted to show lower profits.
- Uncertainty and Seeking Clarity: Many members express frustration with the lack of clear communication from platforms regarding their DAC7 reporting practices, leading to uncertainty in planning for the next year.
The conversation highlights the challenges webcam models face in navigating tax laws and the importance of staying informed about platform policies and tax regulations to make informed decisions about their work.