The term “independent professional services” means any activity performed by a person who is self-employed, and based on professional and scientific expertise rather than capital, income from such activities is subject to the income tax.
The term includes services presented by such independent professionals as lawyers, accountants, doctors, consultants and engineers. Revenues received from independent professional services within a year as well as expenses paid are recorded on a simple accounting book. In general, all expenses related to independent professional services can be deducted from revenues. But, the scopes of those expenses are narrower than those specified for the commercial and business activities.
The following expenses are allowed to be deducted from the gross revenue in reaching the profit from independent professional services:
– General expenses made to gain professional earning and survival of business,
– Alimentation and accommodation expenses of the servants and workers at the workplace or its premises, their medical treatment and drugs expenses, insurance premiums and retirement allowances,
– Travel and accommodation expenses related to business trips (provided that it is limited to the period required by the object of the trip),
– Amortisation amount reserved according to the Tax Procedural Law for installations, fixed assets and the vehicles included in inventories, used in business activities,
– Expenses related to vehicles rented or included in the inventory,
– Amounts paid for business press,
– Cost of goods and services procured for performance of business activities,
– Registration and retirement allowances paid to the retirement funds for self employment activities and other subscription fees paid to the professional organizations,
– Proficiency, announcement and advertisement taxes paid for conducting business and obtaining earning as well as the charges and levies in kind related to workplaces,
– Compensations paid according to the laws, verdict and contracts related to business activities
Source: Revenue Administration
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