We received couple questions regarding the difference between the real expenses tax and the flat rate expenses tax.
Real expenses tax is paid when you collect all receipts from your payments for phone, rent, gas and etc, and use these to claim a deductible sum for your tax return. For example, lets say you have a revenue of 1000 EUR and expenses of 200 EUR. This means that you will only have to pay tax for the difference between the revenue and expenses, which is 800 EUR.
Flat rate expenses tax (lump sum tax) is not related to your expenses and is set by the government. The total of amount of tax you will have to pay depends solely on your income and currently (2011) the deductible sum of your revenue is at 40%. Thus, if your revenue is 1000 EUR your expenses are conspired to be 40% of that, which comes to 400 EUR. This means your tax will be based on the difference, which is in this case 600 EUR.
For more detailed information please visit www.epi.sk