John is a carpenter whose self-employment income for the closed accounting period amounted to EUR 48,309. He claimed real expenditures amounting to EUR 38,130. The basic taxable amount (before deduction of the non-taxable part) amounted to EUR 11,442. John paid the tax amounting to EUR 1,360 (after deduction of the child tax credit etc.). According to the calculation based on the basic taxable amount, his net monthly income amounted to EUR 840.
If the bank based its calculations on 10 % of sales, his net income would amount to EUR 40,25 (sales: EUR 48,309 x 0.1 / 12). With this level of monthly income, the bank would not be willing to lend him a single Euro.
However, if he claimed flat-rate expenditure, his net income as calculated by the Slovenská sporiteľňa would amount to EUR 2,415.45 (sales: EUR 48,309 x 0.6 / 12), which is almost three times the amount calculated based on the basic taxable amount.
This significant difference in the net income level thus results in a significant difference in the amount the bank would be willing to lend to John as a self-employed person. (Note: John is a client who is married; his spouse receives parental benefit; they have one child; no other commitments; 80 % financing; 30 years’ maturity.)
With the same income, the maximum amount John would be able to borrow as a self-employed person would differ by at least EUR 74 000, which might constitute a price of a one-bedroom apartment in some regions.