What are the restrictions of individual activity under a business certificate?

The main restrictions are:

• the maximum amount of income that can be received per year is 45,000 EUR*;
• providing services to companies when activities overlap is not possible**; 
• an amount not exceeding 4,500 EUR*** can be received from companies that do not carry out activity analogous to that specified in a business certificate;
• after acquiring a trade business certificate, an amount not exceeding 4,500 EUR per year can be received from companies and / or other natural persons who are engaged in individual activity.

* After an amount of 45,000 EUR is exceeded, the part of income exceeding this threshold is taxed at a rate of 15% as income from activity under an individual activity certificate, applying an income tax credit.

When engaged in leasing residential premises after acquiring a residential rental business certificate, income of 45,000 EUR can be received per calendar year. After an amount of 45,000 EUR is exceeded, the part of income exceeding this threshold is taxed at a rate of 15% as income derived from letting property for lease without having acquired of a business certificate.

** If you have acquired a business certificate and carry out the same activity as the legal person, and you sell goods (including self-manufactured goods) or provide services to such a legal person, then income received from such a legal person is taxed as income from the registered individual activity carried out under an individual activity certificate.

*** Part of income that exceeds 4,500 EUR is taxed as income from the registered individual activity carried out under an individual activity certificate.