Deducting expenses from income sourced from self-employment in agricultural activities
Deducting expenses from income sourced from self-employment in agricultural activities
Allowable deductions are ordinary expenses incurred in the course of self-employment in agricultural activities, linked to the income thereof actually generated during the year.
There are two ways to deduct expenses from income sourced from self-employment in agricultural activities:
- deduct expenses actually incurred and documented; or
- deduct 30% of the generated income (without documentation).
For more detailed information, please see here (only in Lithuanian).
Please note that not all expenses substantiated by documentation may be deducted from self-employment income. For the purposes of calculating personal income tax, three types of expenses are identified:
- expenses that are fully deductible (allowable deductions);
- expenses that are partly deductible (limited allowable deductions);
- expenses that cannot be deducted (non-allowable deductions).