If the income from rent is not business income and the income tax was not withheld, it is declared in Part II of Table 5.4 of Form A. If the income from rent is not business income and income tax on this was withheld, it is declared in Part I of Table 5.4 of Form A. If business expenses are indicated on Form E, income must be also declared on Form E. Income from a commercial or residential lease is declared on Form E if the taxpayer is registered as a sole proprietor and the income from rent is his or her business income. According to the Income Tax Act, income from a commercial or residential lease may be declared either on Form A or Form E.When submitting Form E, the annual accounting must be organised and final. On Form E, income and expenses are entered inclusive of the value added tax.īusiness income and expenses are taken into account in the year when the income was received or expenses were made (paid).Īmounts indicated on Form must comply with the amounts entered in the accounting.
if a sole proprietor has used an accrual method of accounting, he or she is required to adjust it to the cash accounting. The income tax return Form E must be completed on the cash basis accounting, i.e.If an enterprise is transferred to a person who continues the activities of a sole proprietor, the transferor shall submit an annex to Form E together with Form A and Form E by 30 April of the year following the period of taxation.The amount of 500 euros is deemed the sole proprietor's income of the next year and it is not taken into account in the declaration of income in the current year. The sole proprietor received money for the delivered goods next year in January. Business expenses and business income are taken into account in the year when the income is received or the expenses are made.Ī sole proprietor delivered goods to a purchaser and in October the sole proprietor submitted an invoice in the amount of 500 euros.