With €25,000 in annual revenue, the net income of a flat-rate business (professional, 78% coefficient) is about
17.754 € per year
The flat-rate net income calculation always follows the same four-step path: (1) the profitability coefficient is applied to revenue to get the gross taxable income; (2) social security contributions are calculated on this income; (3) contributions are subtracted from the gross income to get the net taxable income; (4) the substitute tax rate (15% or 5%) is applied to this last value to get the tax due. The final net income is revenue minus contributions and tax.
| Step | Formula | Value (on €25,000) |
|---|---|---|
| 1. Reddito imponibile lordo | 25.000 € × 78% | 19.500 € |
| 2. Contributi INPS | 19.500 € × 26,07% | 5.084 € |
| 3. Reddito imponibile netto | 19.500 € − 5.084 € | 14.416 € |
| 4. Imposta sostitutiva | 14.416 € × 15% | 2.162 € |
| Netto finale | 25.000 € − 5.084 € − 2.162 € | 17.754 € |
Calculation based on a 78% ATECO coefficient, 15% rate, INPS Separate Scheme at 26.07% (no minimum threshold, proportional to actual income). For Craftsmen/Traders the calculation changes, since it includes a fixed minimum contribution and a possible 35% reduction.
This example uses the most common coefficient for professionals (78%), but the calculation changes based on your specific ATECO code, applicable tax rate, and pension scheme. Use the full flat-rate scheme calculator to enter your specific details.