Minimum presumptive income: Which freelancers qualify for a discount

Less or even zero charges brought to thousands of professionals, self-employed and individuals enterprises the final provisions of the tax bill of the Ministry of National Economy and Finance for the documents of professionals. After the corrections and improvements made until shortly before the passing of the bill, the fan of deductions and exemptions from the minimum presumptive income opened even more without, however, the changes changing the core of the new tax regime for professionals.

With the final regulations thousands of self-employed professionals will be taxed with a reduced up to 67% presumptive rate or based on the income they declare in the tax return.

Exemptions from the minimum presumptive income

They will not be taxed based on presumed income but according to the income they will declare to the Tax Office:

• The farmers
• Those who are paid with a block and have up to 3 employers
• Professionals with a disability equal to or greater than 80%
• The cafes in villages with less than 500 inhabitants and islands with less than 3,100 inhabitants. These are 1,800 businesses
• Insurance consultants who work with up to 2 companies and declare their residence as their headquarters
• The young professionals for the first 3 years from the start of the activity

The presumption is reduced by 50% for:

• Professionals with a disability of 67% to 79%
• Professionals who carry out an activity and have their main residence in settlements with a population of up to 500 inhabitants and on islands with a population of less than 3,100 inhabitants
• Parents of a single-parent family with minor children
• Parents with dependent children with a mental or physical disability rate of at least 67%
• Parents of large families
• Taxi operators with an ownership percentage of the vehicle not exceeding 25%

Discounts

The presumption of minimum presumptive income is reduced:

• By 67% for freelancers for the 4th year of their activity and by 33% for the 5th year
• For kiosks and convenience stores with the exception that they will have from the increase of the presumption based on the turnover for the part of the turnover that comes from sales of tobacco products
• For professionals with seasonal activity (school canteens, etc.) as for this specific category, the amount of taxable income will be calculated with the actual time of activity, i.e. based on twelve decimal places. For example, if the business operates for 6 months, the minimum presumptive income will be halved, while for 10 months of business operation, the presumption will be calculated for 10/12
• For those professionals who obtain income from salaries, pensions or from agricultural business activity as these amounts are included to cover the presumption. For example, if the presumption for a professional is determined at 12,000 euros and he has an income from wages of 7,000 euros, the presumption is reduced to 5,000 euros (12,000-5,000)