In 2023, a significant number of professionals, including bar and hair salon owners, restaurant and car repair shop owners, veterinarians, and taxi drivers, reported losses in their incomes. This led to the implementation of a new way of calculating incomes, particularly through the presumptive way of taxation for those who declare losses or very small profits.
According to data from the Independent Authority for Public Revenue, the average tax for professionals under the presumption system increased to 1,733 euros in 2024, a significant jump from the previous year’s 548 euros. It is evident that many freelancers continue to understate their incomes, with the majority of bar and hair salon owners reporting losses.
Despite the new tax calculation system, those who declared profits in previous years faced a mild additional tax burden. However, the coming years will bring changes, including an increase in the minimum taxable income to €830 and the abolition of a 50% reduced fee for practicing a profession.
These findings reveal that many professionals fail to issue receipts, leading to a decrease in taxable income and hindering their access to financial programs and loans. The government has already started targeting individuals with high expenses and incomes below €10,000 to address tax evasion issues.