• 20/01/2023

Low tax for young freelancers

New self-employed professionals will be taxed at a rate of 4.5% for the income they received in 2022. The legislation provides for a 50% discount of the tax rate from the first step of the income tax scale. The reduced tax rate applies for the first three years of their activity, as long as their annual gross income from business activity does not exceed 10,000 euros. But it is not the only discount they have. According to the legislation, new entrepreneurs or new sole proprietorships have the following tax exemptions and reliefs:
• When income from business activity is acquired for the first time, the amount of advance income tax to be certified is limited to half, namely to 27.5%.
• They are exempt from the imposition of a trade fee for the first five years from the start of trade.
• There is a possibility of exemption from VAT if the annual gross income is less than 10,000 euros.
• No minimum mandatory capital is required when setting up a sole proprietorship.