You must submit an income tax return for the income you acquire from your business activity up to the 30th June of the current year (forms E1 , Ε3) for the taxable income you acquired in the immediately previous year.

Taxable income is the income remaining after deducting the expenses from business activity deducted from gross income.

• For the determination of the profit from business activity, it is allowed to deduct all expenses which:
  
  a) Take place for the benefit of the business or in the course of ordinary commercial transactions,
  b) Correspond to an actual transaction and the transaction value is not deemed lower or higher than the market one, based on the data available to the Tax Authority,
  c) Are recorded in the books kept for the presentation of transactions of the period in which they are take place and are proven by suitable documents.

• • Expenses not deducted from gross income from business activity are indicatively the following:
  
  a) Any type of expense regarding purchase of goods or procurement of services of value, as it is provided for in the current tax legislation, if the partial or total repayment did not occur by means of a bank payment,
  b) Not paid social security contributions,
  c) Fines and penalties including increments,
  d) Personal consumer expenses
   

(deducted expenses are mentioned in detail in art. 23 of the I.T.C.)

Taxable income from business activity, after adding to it any income from salaries and pensions, is subject to tax, according to the income tax bracket as provided for in the current tax legislation.

You should know that:

Natural persons are entitled to fifty per cent (50%) deduction of the tax rate from the first bracket of the tax scale for the first three (3) years they exercise their activity, if their gross annual income from business activity does not exceed ten thousand (10.000) euro.

When is your income from business activity treated as income from salaried work.

In some cases, although you are carrying out a business activity, your income may be taxed as income from salaried work. This means that the tax reductions applying for income from salaried work will apply to you (the income tax reduction for income from salaried work is mentioned in detail in art. 16 of the I.T.C.)

Income from business activity is treated as income from salaried work:

• When you provide services based on written service provision contracts or work contracts, with natural or legal persons or legal entities not exceeding three (3) or, if they exceed this number, a proportion of seventy five per cent (75%) of the gross income from business activity comes from one (1) of the natural or legal persons or the legal entities taking said services,
• If you do not have a commercial capacity,
• If you do not maintain a professional facility different from your residence &
• If you do not acquire income from salaried work.