15% on Part Time Self Employment

An optional flat rate of 15% is available on the first € 12,000 arising from part-time self-employment income.

Do you have part-time self-employment income?

If you do, then you can avail yourself from a flat tax rate of 15% on the first € 12,000 arising from such part-time self-employment.

The aforementioned 15% has been reduced to 10%, applicable with effect from 2022. This means that any part time self employment income arising during 2022 will be subject to a reduced rate of 10% , applicable on the first € 12,000.  If the part-time income exceeds these amounts one would have to declare the excess in his income tax return.

How is 15% calculated?

The 15% rate is calculated on the profits, meaning the difference between the revenue and any expenses which are directly incurred in the production of such turnover.

How to apply for 15%?

If you wish to avail yourself of this reduced rate, you need to fill in and file a prescribed form as provided by the Inland Revenue Department. Such form needs to be signed and submitted to the Commissioner for Revenue by not later than 30 April 2022.

Can the process be done electronically?

Yes, the said prescribed form can be completed and submitted through the Inland Revenue Department’s portal.

How can we assist?

We can help you in assessing if the 15% tax rate is beneficial for you as well as providing you assistance with your compliance obligations. We can also assist you in preparing your personal income tax return as well as to prepare the prescribed form through which you can avail yourself of the 15% tax regime.

Contact us for more information!