The practice of declaring losses or meager income, according to an analysis of their tax return data continues. Those who appear by far the most penurious to the IRS are bar owners, followed by restaurateurs and those who own car repair shops.

In contrast, the situation seems to be better for taxi drivers, dentists and plumbers, but they too declare an income of less than €1,000 a month.

Of course, several freelancers have been affected by the new presumptive way of taxation, which was implemented this year by the Ministry of Economy and Finance to avoid similar phenomena, according to its staff.

Specifically, the data from the returns for the 2023 tax year show the following:

– Only 40% of bar owners reported profits. Specifically, they declared an average monthly income of 1,154 euros , which corresponds to an average tax of 1,348 euros. By calculating the presumptive income, the average monthly income amounts to 1,155 euros , and the average tax to 2,142 euros (794 euros more tax).

– Only 53% of restaurant owners declared a profit. Specifically, they declared a monthly net income of 1,277 euros , which corresponds to an average tax of 3,068 euros. Under the presumptive system, the average monthly income is 1,695 euros , and the average tax is 3,970 euros (902 euros more tax).

– Only 40% of salon owners declared profits. In particular, they declared a monthly net income of 358 euros (less than the unemployment benefit), which corresponds to an average tax of 654 euros . With the presumptive taxation method, the average monthly income is 1,118 euros , and the average tax is 1,797 euros (1,143 euros more tax).

– Only 53% of car repair shop owners declared profits. Specifically, they declared an average monthly income of 665 euros , which corresponds to an average tax of 1,295 euros. Under the presumptive system, the average monthly income is 1,182 euros , and the average tax is 2,112 euros (817 euros more tax).

– 57% of veterinarians declared profits. In particular, they declared an average monthly income of 885 euros , which corresponds to an average tax of 1,880 euros. Under the presumptive system, the average monthly income is 1,220 euros , and the average tax is 2,423 euros (1,241 euros more tax).

– 70% of the plumbers declared profits. Specifically, they declared an average monthly income of 800 euros , which corresponds to an average tax of 1,553 euros . With the presumptive system, the average monthly income is 1,162 euros , and the average tax is 2,105 euros (552 euros more tax).

– 73% of the dentists declared profits. Specifically, they declared an average monthly income of 903 euros, which corresponds to an average tax of 1,719 euros . With the presumptive taxation method, the average monthly income is 1,278 euros , and the average tax is 2,334 euros (615 euros more tax).

– 76% of taxi drivers declared profits. Specifically, they declared an average monthly income of 545 euros , which corresponds to an average tax of 810 euros . With the presumptive taxation method, the average monthly income is 972 euros , and the average tax is 1,481 euros (671 euros extra tax).

According to sources from the Ministry of National Economy and Finance, the analysis of the above data leads to the following conclusions:

1. Freelancers continue to under-report their income. In categories such as bar and salon owners, the majority are reporting losses. In fact, hairdressers who declare profits (4 out of 10) are actually declaring that they live on €358 a month (less than unemployment benefit).

2. If the presumption were not applied, these professional categories would continue to pay little or no tax.

3. The additional tax burden for those who have declared profits in previous years and continue to do so this year is mild. We must also take into account that this year they paid a 50% reduced business tax, which is fully abolished from next year.

4. The above data shows that access to bank lending and European funding programmes for the above companies is becoming difficult or impossible, as they choose not to present their actual financial data, showing little profit or loss.