Taxation of individual business activities

Individual activities shall mean any independent activity in pursuit whereof an individual seeks to derive income or any other economic benefit over a continuous period:

  1. independent commercial or industrial activities of any nature, save for sale and/or lease of real estate activity;
  2. independent creative, professional, scientific activities including professional independent activities;
  3. independent sports activities;
  4. independent performing activities.

The list of individual activities exercised under a business certificate paying fixed tax amount.

Income from individual activities shall comprise all income received from individual activities, including income from the sale or other transfer into ownership of property used for the purpose of individual activities but except income from sale and/or lease of real estate activity.

Individual business activities are subject to 15% personal income tax (PIT) rate.

Individual performing individual business activities has to:

  1. Calculate taxable profit;
  2. File annual income tax return and pay 15% PIT until 1 May of the following year;
  3. Pay 9% health insurance contributions (HIC) and 28,9% social security contributions (SSC) base of which is 50% of taxable income.

Individual may deduct the expenses under:

  1.  Documents possessed; or
  2. 30% from his income having no documents. The individual may deduct 30% of expenses from his income even he has no any expenses.