What is changing in the taxation of the self-employed – five intervention measures

Freelancers declared income of 9.9 billion euros for 2023, according to tax returnsfiled this summer, which is a significant increase of €4.8 billion, compared with €5.1 billion last year.

Thus, according to sources, decision of the Ministry of Finance on changing the method of taxation with the help of imputed incomeit seems, “justified” since the goal of obtaining additional income was achieved. Indeed, total additional amount, received by the state from the new tax method in 2024 compared to 2023 is about 440 million euros. What many freelancers went brokepaying this tax, the authorities are not particularly interested.

According to data obtained from income analysis, the average declared income of freelancers is 13,901 euros. However every other declared a monthly income of 268 euros, which proves that the income did not arise because they declared higher incomes. Professionals still raise objections, although the percentage of those who actually challenged the audit result remains low – 0.006% of those who are liable under the presumption. That's just 263 people, according to the tax return processing data conducted by the Ministry of Finance and AADE. The rest understand that arguing with the state in the current situation is useless.

Measures being considered by the Ministry of Finance: andIt is the tax administration's report that will determine changes in the taxation of professionals, since, according to statistics, professionals continue to underreport their income. Now the economic headquarters has included in its “agenda” a review of the entire system to determine whether there are points of improvement and whether distortions persist. In fact, as sources say, the changes are likely to be announced by the Prime Minister at the TIF in early September. In this context, the five most common scenarios include:

• The turnover criterion on the basis of which imputed income is increased.
• A labor cost criterion that, especially in the case of individual entrepreneurs who hire employees with many years of experience, significantly increases imputed income.
• Possibility of including family income.
• Improving the procedure for challenging the minimum imputed income.
• Reducing the burden associated with adjusting the minimum wage, which is the basis for calculating the minimum imputed income.

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