self employed income tax payments

Hi,

 Am I right in understanding when you are self employed are there two different ways of paying your income tax?

1) you pay 250 euros for your social security + you can fill in a tax return and pay tax on your profits.

2) you pay 250 euros for your social security  + you pay an agreed set amount for your tax without having to fill in a tax return.

Does anyone know what the set amount would be ?

                                                            thanks.

Hi Cosmo

I am autonomo (self employed) and was a bit puzzled when I read your post.  Yes, I pay around 250€ a month for social security and am happy to do so as it secures pension and health rights for my family.  This is totally separate to the income tax system however apart from the fact that you can deduct the monthly payment from your profits like other costs.

However I understood that ALL autonomos had to file annual tax returns.  There are certain trades like bar-owners, lorry drivers and builders who can pay a fixed monthly amount (the amount depends on the size and potential of their business) but they still do have to file a return.

I hope this is of some help.

James

Thanks for the reply bakeja,