Parameters → Settings → Individual Activity (IV)

1. Individual activity by certificate:
Enter the EVRK code by clicking the „+“ button. The names of the activity types will be displayed in the "Resident Individual Activity Income–Expense Accounting Journal".

2. Applicable expense deduction method and accounting principle:
2.1 To enter the method, click the „+“ button;
2.2 Select the appropriate deduction method and accounting principle:

2.3 Expense deduction method:

• 30% of income deduction method – in this case, 30% of income is non-taxable, meaning the remaining 70% of income is taxable. Using this method, it is not necessary to collect documents confirming expenses.
• Actual expenses method – the taxable amount is calculated by subtracting actual expenses from income. Using this method, documents confirming the expenses are required.

2.4 Accounting principle:

• Cash principle – income is recognized at the moment it is actually received. This is chosen for non-VAT payers (individuals whose income over the last 12 months did not exceed €45,000), activities not using long-term assets, as well as performers or sports activity participants.
• Accrual principle – income is recognized when earned, regardless of payment timing. This principle must be used by individuals who have assigned long-term assets to their activity or are VAT payers. Once the accrual principle is applied, it remains in effect until the end of the activity.

Note. The years for which settings are entered are the only years selectable in the "Resident Individual Activity Income–Expense Accounting Journal". If settings are not entered, no years will be available for selection, and it will not be possible to generate the report.