Glossary

Work and formalities

Self-employment

In Russia, the everyday name for a special tax regime for independent professionals who work for themselves without hiring staff. Its official name is the professional income tax.

Professional income tax

A Russian tax established by Federal Law No. 422-FZ of 27.11.2018. The rate is 4% on income from individuals and 6% on income from sole proprietors and companies. The regime is available while annual income does not exceed 2.4 million roubles. Rules differ by country — check your local tax office and financial regulator.

Sign-off document

A document in which the client and the contractor confirm that the work has been completed and accepted. It helps close the project and is useful if a dispute arises later.

Service agreement

An agreement that sets out the task, deadline, price, and payment and delivery terms. It can be signed on paper or electronically.

Projects and payments

Portfolio

A selection of your work with a description of the tasks and results. It shows a client what you can do better than any list of skills.

Test task

A small trial assignment before a working relationship begins. A reasonable test task takes little time and is not used by the client as free finished work.

Deposit

Part or all of the amount that the client pays before work begins. It reduces the contractor's risk of not being paid.

Proposal

A contractor's response to a project or job posting: a short message about how you will handle the task, with work samples.

Security

Phishing

An attempt to trick you into revealing a login, password or card details through a fake email, message or page that looks like the real thing.

Two-factor authentication

A sign-in method that requires a second confirmation in addition to your password, such as a code from an app or a message. Then even a stolen password is not enough to get in.

Money mule

A person whose card or account scammers use to move other people's money. Mules are often recruited under the guise of "simple work handling transfers"; taking part in such schemes can lead to serious legal liability.

Ponzi scheme

A scheme in which early participants' "returns" are paid from newcomers' contributions rather than from real business activity. Sooner or later the flow of new money stops, and most participants lose what they put in.

Social engineering

Tactics a fraudster uses to get a person to hand over data or transfer money themselves: urgency, pressure, and playing on trust or fear.

Read next

• Key concepts

  Key concepts of working online: types of work arrangements, client and contractor, contracts, payment, tax and the main risks.

• Security

  Two-factor authentication, phishing, SMS codes, fake job offers, money mule schemes and paid-like tasks: how to recognize them and what is at stake.

• FAQ

  Answers to common questions about this guide, finding projects and getting paid, the tax for the self-employed, and keeping money and accounts safe.

• Comparisons

  Employment contract, freelancing through a platform, direct clients and self-employment: what each option offers and what to think about in advance.