Professionals using check blocks: 5 conditions will help you avoid unnecessary taxes

Professionals using check blocks may be exempt from the new presumptive income tax system that applies to freelancers, but they will pay full business tax as the 50% cut does not apply to them.

Tax authorities are considering employees using check blocks, How employeessince they are conditionally entitled to a tax-free threshold of between €8,636 and €12,000, depending on their marital status, and also as professionals, as they are charged a business tax of between 400 and 500 euros.

Five conditions

To avoid introducing minimum imputed income and taxation of income from the first euroemployees using check blocks must complete five conditions:

1. Submit a declaration on starting a business to the competent tax authority.
2. Register a declaration of establishment of a business activity at the beginning of the year and should have submitted a declaration of registration at the beginning of the business year.
3. State that the place of business is a place of residence.
4. Do not receive wages from another job.
5. To provide services in which the element of consulting or scientific, artistic and intellectual creativity predominates, that is, to carry out activities that qualify as a “free profession” (“ελευθέριο επάγγελμα”).
   This is the activity of a doctor, dentist, veterinarian, physiotherapist, biologist, psychologist, midwife, lawyer, notary, bailiff, bailiff, architect, engineer, surveyor, chemist, agronomist, geologist, forester, ecologist, oceanographer, designer, journalist, translator, interpreter, guide, translator, teacher, teacher, sculptor, painter, painter, sculptor, sketch artist or engraver, actor, music composer, music performer. Similar services are also provided by singer-artist of entertainment centers, dancer, choreographer, director, decorator, costume designer, economist, analyst, programmer, researcher or business consultant, accountant or tax consultant, actuary, sociologist, social worker, expert, homeopath, alternative medicine practitioner, psychotherapist, speech and language therapist, speech and language pathologist, expert witness, arbitrator, general liquidator, SA auditor, executor of wills, executor and custodian of the estate, archaeologist, trainer, occupational physiologist, occupational therapist, graphic designer, nutritionist, nutritionist, curator of antiquities, curator, proofreader, nurse or paramedic.

Tax deduction

If a professional using check blocks does not meet at least one of the above conditions, he is taxed as a private entrepreneur, and his income is calculated according to the new conditional tax system at a rate of 9% from the first euro to 10,000 euros and on at a rate of 22%-44% for the part of the annual remuneration exceeding the level of 10,000 euros.

All professionals using block checks and meeting five conditions will be exempt from imputed income and will receive a tax credit of €777 for a taxpayer without dependent children, €810 for a taxpayer with one child, €900 for two children, €1,120 for taxpayers with three children and €1,340 for taxpayers with four dependent children.

For each additional dependent child after the fourth, the tax deduction increases by 220 euros. The tax deduction results in an implicit tax-free income limit of between €8,636 and €12,000, depending on marital status.

Workers using check blocks

Five conditions to avoid the minimum imputed income

1. Filing a declaration on starting a business
2. Providing services to no more than three employers
3. Domicile – place of residence
4. Not getting paid at another job
5. Providing freelance services.

Tax deductions

1. Without dependent children: 777 euros
2. With one child: 810 euros
3. With two children: 900 euros
4. With three children: 1,120 euros
5. With four children: 1,340 euros
6. Business tax: 400-500 euros per year.

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