Working on your own, that is, as a freelancer, or setting up your own company right now is not an easy task. There are many obstacles that we have to face, many of them in the form of taxes.
However, there are certain advantages and deductions that not all self-employed workers in our country know first-hand. The truth is that information in this sense is not very widespread nor is it as popular as many would like. We will find an example of all this in the deduction that many do not know and from which you can benefit at this moment to recover money in your income.
Little by little we are approaching the end of the year, a not very good date, economically speaking, for these self-employed workers. Hence, precisely now that we start the month of November, you still have time to take advantage of a deduction that we will talk about below. Specifically, we are referring to a deduction regulated by corporate tax accessible to all self-employed workers or small businesses.
Specifically, the deduction that we will comment on focuses on article 39.7 of the Corporate Tax Law. To give you an idea of the benefits you can obtain, this article allows us to deduct 120% of the amounts we have invested in culture. Yes, you heard correctly, the deduction we were talking about focuses on us investing in culture to save a good amount of money in taxes in the next Income Tax return.
How to save if you are self-employed with culture
With all this, what the central government intends is to favor the self-employed or companies in our country that wish to invest in culture. Hence precisely this tax incentive that we are talking about and that most of you do not know about. Therefore, if you are interested in this deduction for self-employed workers and companies, it is something that you can specify in your next income tax return.
In fact, we find a specific box in which we will have to indicate the amount of money invested in culture to apply the corresponding deduction that we talked about, throughout the last year. Taking into account that, on that amount of euros stipulated and invested in cultural projects, we can deduct 120%, we will always win.
Obviously, this is a proposal not available to all citizens, but as we told you, the central government wants to promote it for the self-employed and companies. Basically, what we achieve with all this is to deduct 100% of what we invested in cultural projects, plus an additional 20% that we will see reflected in our annual income tax return due to this tax incentive.
Of course, for this we will first be forced to make this investment out of our own pocket to receive the corresponding 120% deduction after a few months. The problem here is that not all self-employed people are willing or have the capacity to make that investment in cultural projects.
