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Self Employed Persons

Characteristics

  • Are taxed on profits, not turnover
  • Expenses incurred for the running of the business are tax allowable (deducted for tax purposes)
  • Are taxed on the PAYE tax brackets of the employed persons
  • When their turnover exceeds Euro 70,000 annually, audited financial statements must be prepared just like companies
  • Must be VAT registered and follow VAT rules and regulations
  • Can register as employers and be responsible personally for their staff payroll taxes, just like companies 
  • Are frequently scrutinized by the VAT and Income Tax offices (more often than companies)
  • Are personally liable to VAT and Income Tax offices (unlike companies)

Our Advice

  • The legal framework should outweigh the minor tax benefits when deciding whether to incorporate a company.
  • Avoid been a self-employed person with employees.
  • Always consult with an expert before you make any decision