If you’re starting a business and are thinking of becoming self-employed, find out from Lucrivolume which tax regime is best for you!

Choosing a simplified regime or organized accounting can make a difference to the tax costs of your business. But what’s the difference?

The simplified regime applies to self-employed workers with a gross annual income of up to 200,000 euros. Under this regime, it is assumed that part of the gross annual income relates to expenses necessary for the operation of the business, i.e. only the remaining part of the gross annual income is subject to taxation. The main advantages of this regime are fewer tax obligations, fewer associated expenses and the exemption from taxation of part of the gross annual income. However, the simplified regime does not allow you to deduct all the expenses incurred in carrying out your activity.

What about organized accounting? This system is compulsory for all self-employed people with a gross annual income of over 200,000 euros. Under this regime, taxable income is obtained by subtracting the gross annual income obtained from the exercise of the activity, without limit. The great advantage of this regime is precisely the possibility of deducting expenses related to the activity without any limit, despite the fact that it requires more tax obligations.

Still have doubts?

Talk to the Lucrivolume team!

We’re ready to help you with anything you need.