In the framework of the fiscal reform 2009 a new allowance on profits has been introduced which, compared to the allowance on reinvested profits, has brought an extension of the scope of application. The new rule will enter into force in 2010.
As of the fiscal year 2007, self-employed persons, who adopt cash based accounting, may claim 10% of the profits or a maximum sum of 100.000 euro for the purpose of reducing the tax base on the condition that in the same year investments in fixed assets subject to wear or investments in privileged securities have been made.
Starting in 2010, the allowance on reinvested profits has practically been renamed in allowance on profits. It was increased to 13% of the tax base and extended to all methods of  income and company profits determination. Accordingly all natural persons producing income from agriculture and forestry, self-employed activities or economic and commercial activities may claim this allowance. Income from renting and leasing is excluded from this rule.
In future the scale of the allowance will be also limited to an amount of 100.000 euro a year. It will consist of a basic allowance and an allowance for investments may further be claimed. For profits amounting to 30.000 euro, a maximum allowance of 3.900 euro a year will be granted.
The basic rate of 13% will be automatically accounted for in the tax declaration for 2010 and it is not necessary to file any documentation related to the investments made. If the profits are higher than the limit of 30.000 euro, it will be possible to claim an allowance for investments up to a maximum profit of 739.230 euro.
However, the extension of the scope of application of the allowance on profits has been accompanied by the complete cancellation of the tax reliefs applied to profits not withdrawn. For profits not withdrawn up to now, which are subject to tax reliefs, the withdrawal limit for will remain in force.
If the taxpayer should not want to further adhere to the withdrawal limits, a transitional rule allows for a voluntary payment of subsequent taxes regarding all the profits eligible for tax reliefs up to the year 2008 which then have to be included in the tax return for the year 2009. In this event a lump sum rate of 10% will be applied.