If you are self-employed, there are a number of expenses that you can deduct, but it is advisable that you know exactly what they are, since the Tax Agency will review them closely. The general rule is very simple: you can deduct all expenses that are directly related to your economic activity, as long as they are justified with the corresponding invoices and recorded in your accounting.
The main expenses that you can deduct:
1. Consumption and maintenance.
You can deduct all purchases of products, whether merchandise or raw materials, that you need to carry out your economic activity. You can also deduct expenses incurred for maintenance and/or repair, whether of the premises where you work or the equipment you use, unless they are classified as improvements.
2. Workers' expenses.
If you have employees under your charge, all expenses you incur malta mobile phone number data are deductible, from their payroll, salaries and compensation to Social Security contributions, training expenses and contributions to pension plans.
3. Leases, fees and taxes.
You can deduct the rent for your workplace or the payments on a leased vehicle, as well as the fees you have to pay. You can also deduct the property tax, the tax on economic activities and any other state tax or fee.
4. Services of independent professionals.
You can deduct the invoices of all independent professionals you have used to carry out your activity, as well as those of intermediaries and commercial agents.
5. Financial expenses.
If you have a loan as a self-employed person, you can deduct the interest as well as the expenses for banking services and surcharges for deferred payments, including those from the Tax Agency.
6. External services.
You can deduct expenses on advertising, public relations, subscriptions to professional journals, event and course expenses, membership fees to business associations, water, electricity and gas bills and even health insurance premiums, including those of your partner and children under 25 years of age who live with you, up to a maximum of 500 euros per person.
In the case of input VAT, you can only deduct it from personal income tax if it is not deductible from the quarterly VAT return .
The most controversial deductions you should be careful with
The main problem usually arises when working from home, although since last year self-employed people can deduct household supplies from their personal income tax in proportion to the space they use. If you live in a rental, you can ask the owner to give you two invoices and you can deduct one of them.
In the case of the vehicle, if you only use it for your economic activity, you can deduct the fuel cost and the VAT, but if not, you can deduct 50 percent of the VAT on the car and the expenses it entails. Regarding the telephone and ADSL, if you only have one mobile line, you can deduct 50 percent of the expense since the rest is considered to be for personal use.