Tax returns: New E3 codes for freelancers – what you need to know

Freelancers, self-employed and individual entrepreneurs should know that in 2024, Form E3on the basis of which their income is calculated (for 2023), introduced new codes.

New E3 codes will be required for 735,000 freelancers, self-employed and sole traders on their tax returns this year as their income from last year will now be subject to conditional tax, with a minimum taxable income of €10,920 if their professional activity lasts 6 years, and if more than 12 years, then the maximum taxable income is set at 14,196 euros, regardless of real income.

Additional reasons that increase the taxable imputed income and must be declared in the new E3 codes are the hiring of employees, the costs of paying them, the amount of annual turnover that the company or specialist had in 2023 and the years of work.

For other taxpayers, the taxisnet portal for filing returns will open at the end of March, the deadline for filing returns is June 30, and the first tax payment will be paid at the end of July. What needs to be specified in the new E3 codes:

• The annual gross income of an employee earning the minimum wage, or, if the business has employees, the amount of income of the highest paid employee.
• Years of operation of the enterprise.
• Total annual expenses for remuneration of employees employed in the enterprise or specialists.
• The amount of annual turnover achieved by the enterprise in the 2023 tax year.
• In a special code if it falls into a category exempt from the presumptive tax method.

The special code also states that he wishes to undergo an AADE audit to prove with evidence that he received less income than last year.

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