Tax Office: Dentists, taxi drivers and plumbers declared an income of less than 1,000 euros – 2024-09-19 09:41:29

Analysis of tax return data again shows that the majority of freelancers report losses or meager incomes. Those who appear by far the poorest for the Tax Office are the owners of bars and hair salons, followed by restaurateurs and those who run car repair shops.

On the contrary, the situation seems to be better for them taxi driversthem dentists and them plumbersbut also them declare an income of less than 1,000 euros per month.

Of course, several freelancers have been affected by the new presumptive taxation method, implemented this year by the Ministry of National Economy and Finance, with the aim of avoiding similar phenomena, as reported by its staff.

The data

Specifically, from the data of the declarations for the tax year 2023, the following emerges:

• Only 40% of bar owners reported a profit. Specifically, they declared an average monthly income of 1,154 euros, which corresponds to an average tax of 1,348 euros, if the presumption did not exist. By calculating the imputed income, the average monthly income amounts to 1,155 euros, and the average tax to 2,142 euros (794 euros plus tax).
• Only 53% of restaurant owners reported a profit. Specifically, they declared a monthly net income of 1,277 euros, which corresponds to an average tax of 3,068 euros. With the imputed system, the average monthly income amounts to 1,695 euros, and the average tax to 3,970 euros (902 euros plus tax).
• Only 40% of salon owners reported a profit. Specifically, they declared a monthly net income of 358 euros (less than the unemployment benefit), which corresponds to an average tax of 654 euros. With the presumptive method of taxation, the average monthly income amounts to 1,118 euros, and the average tax to 1,797 euros (1,143 euros plus tax).
• Only 53% of garage owners reported a profit. Specifically, they declared an average monthly income of 665 euros, which corresponds to an average tax of 1,295 euros. With the imputed system, the average monthly income amounts to 1,182 euros, and the average tax to 2,112 euros (817 euros plus tax).
• 57% of vets reported profits. Specifically, they declared an average monthly income of 885 euros, which corresponds to an average tax of 1,880 euros. With the imputed system, the average monthly income amounts to 1,220 euros, and the average tax to 2,423 euros (1,241 euros plus tax).
• 70% of plumbers reported profits. Specifically, they declared an average monthly income of 800 euros, which corresponds to an average tax of 1,553 euros. With the imputed system, the average monthly income amounts to 1,162 euros, and the average tax to 2,105 euros (552 euros plus tax).
• 73% of dentists reported profits. Specifically, they declared an average monthly income of 903 euros, which corresponds to an average tax of 1,719 euros. With the presumptive method of taxation, the average monthly income amounts to 1,278 euros, and the average tax to 2,334 euros (615 euros more).
• 76% of taxi drivers reported profits. Specifically, they declared an average monthly income of 545 euros, which corresponds to an average tax of 810 euros. With the presumptive method of taxation, the average monthly income amounts to 972 euros, and the average tax to 1,481 euros (671 euros additional tax).

The conclusions

According to sources from the Ministry of National Economy and Finance, the following conclusions emerge from the analysis of the above data:

• Freelancers still report their income. In categories such as bar and hair salon owners, the majority of them declare losses. In fact, the hairdressers who declare profits (4 out of 10) actually declare that they live on 358 euros per month (less than the unemployment benefit).
• If the presumption did not apply, these occupational categories would continue to pay little or no tax.
• The additional tax burden for those who declared profits in previous years and continue to declare this year is mild. We also have to take into account that this year they paid a 50% reduced application fee, which is completely abolished from next year.
• The above figures show that the access of the above companies to bank loans and European financing programs becomes difficult to impossible, as they choose not to present their real financial data, showing small profits or losses.

Source: RES-MPE