this 2021 Income Campaign reaches its final extension (ends June 30) and is still many who had doubts while preparing income tax return for this year. Thus, the self-employed or self-employed have the opportunity to deduct some expenses when paying taxes. Unlike employees, it is convenient for professionals to know what deductions will be added to your liquidation.
The most important thing for making these distinctions is that the criteria by which an expense can be deducted from Revenue are clear. This should be directly linked to business activity A self-employed person must have all invoices and be accurately recorded in the expense and investment ledger as a necessary element to justify this.
One of the most important expenses that can be deducted and often unknown, rental of buildings or ‘co-working’ spaces the place where the business activity is carried out. Also they Wages and salaries employees are paid self-employment in addition to other expenditures in favor of personnel such as in-kind salaries, trips, maintenance allowances or rewardsamong others.
Additionally, personnel expenses are counted, for example education, accident insurance, pension contributions and compensation, the services of contracted independent professionals, and external services such as advertising and transportation. In the case of teleworking self-employed, 30% of electricity, water and internet resources.
Payments to Social Security, including those corresponding to employees, Special Regime (RETA) quotas for Self-Employed Workers and taxes such as property tax (IBI), economic activities tax (IAE), as well as contributions to social security partner associations and other surcharges and fees are also included in the deductible, as well as loan and loan interest. In addition, self-employed people who do not file a quarterly VAT return can deduct input VAT.
expenses raw and auxiliary materialsgasoline and other goods necessary for their activities and their expenses Repair and maintenance of materials and deterioration and wear will probably be added to the income statement as a discount.