At a rate of 4.5% will be taxed young freelancers per income received in 2022. The legislation provides for them a 50 percent reduction in the tax rate from the first step of the income tax scale. OUR reduced tax rate valid for the first three years of their activity if their annual gross business income does not exceed 10,000 euros. But this is not their only discount. In accordance with the legislation, new entrepreneurs or new individual entrepreneurs have the following tax benefits and benefits:

• The tax rate of the first pillar of the tax scale is reduced by 50% and in particular to 4.5% during the first three years of activity, if the annual gross business income does not exceed 10,000 euros.

• On the first receipt of business income, the amount of advance income tax subject to confirmation is limited to half, namely 27.5%.

• They are exempt from paying trade duty for the first five years of trading.

• There is a possibility of exemption from VAT if the annual gross income is less than 10,000 euros.

• No minimum required capital is required when setting up a sole proprietorship.

In particular, those who start the activity should be aware of the following:

In addition to discounts, there are also obligations. For business income, debtors must submit an income tax return, in particular forms E1 and E3. Taxable income is the income remaining after deducting expenses deducted from gross business income. To determine business profits, all expenses that:

For five years they are exempt from the collection of feigned duty.

a) They are carried out for the benefit of the company or in the course of its normal business operations.

b) They correspond to the actual transaction, and the value of the transaction is not considered to be lower or higher than the market value, based on the data available to the tax administration.

c) They are recorded in the accounting books of transactions of the period in which they were carried out, and are confirmed by the relevant supporting documents.

Expenses that are not deductible from gross business income include, for example, the following:

a) Any expenses related to the purchase of goods or the receipt of services provided for by applicable tax laws, provided that partial or full payment was not made using a bank payment instrument.

b) unpaid insurance premiums.

c) Fines and penalties, including surcharges.

d) Personal consumption expenses (non-deductible expenses are specified in Article 23 of the Code of Civil Procedure).

Taxable business income, after adding income from salaries and pensions, is taxed in accordance with the income tax scale.