How to fill out economic activities in the Income Tax Return (III): deductions
Posted: Mon Dec 23, 2024 9:39 am
In our review of how economic activities are completed in the Income Tax Return for self-employed persons , it is now time for the deductions and reductions that are applied to net income. Once the difference between income and expenses has been calculated , the resulting figure is what is considered the profit obtained in our self-employed activity. This profit can be reduced depending on its nature and the characteristics of the self-employed person.
Before analyzing these reductions, it should be noted that self-employed persons in normal direct estimation (not simplified) can add to expenses the amount phone number in cambodia equivalent to invoices that have been unpaid for six months or more (box 113). Self-employed persons in simplified direct estimation do not have this advantage, but they can add a fixed amount of 2,000 euros in expenses (box 116). Until the 2015 financial year, instead of a fixed amount, 5% of net income was added to expenses by default as expenses that are difficult to justify.
Box 119: Reduction of income generated in a period of more than 2 years or classified as notoriously irregular A reduction of 30% is established (previously 40%), with a maximum amount of €300,000 to be declared in the same tax period.
Box 122: Reduction for the exercise of certain economic activities . This is a variable reduction depending on the volume of income. This reduction may be applied by self-employed workers who meet the following conditions:
Before analyzing these reductions, it should be noted that self-employed persons in normal direct estimation (not simplified) can add to expenses the amount phone number in cambodia equivalent to invoices that have been unpaid for six months or more (box 113). Self-employed persons in simplified direct estimation do not have this advantage, but they can add a fixed amount of 2,000 euros in expenses (box 116). Until the 2015 financial year, instead of a fixed amount, 5% of net income was added to expenses by default as expenses that are difficult to justify.
Box 119: Reduction of income generated in a period of more than 2 years or classified as notoriously irregular A reduction of 30% is established (previously 40%), with a maximum amount of €300,000 to be declared in the same tax period.
Box 122: Reduction for the exercise of certain economic activities . This is a variable reduction depending on the volume of income. This reduction may be applied by self-employed workers who meet the following conditions: