The topic of this diploma paper is income taxation from manual trades and equated activities. Tradespeople should get informed about all the changes of the law and regulations which happen over a year. To be informed enables tradespeople to avoid situations where certain amendments might put their businesses at risk. In the process of running a business tradespeople might encounter both positive and negative circumstances which in return might encourage or discourage them. On the one hand, there are some situations in which the state does not show any empathy for tradespeople, but on the other taxpayers gain maximum profit from certain benefits of the law and regulations to which they are, of course, entitled. The very idea and setting up a business is actually the biggest step that a taxpayer should make. What is a person supposed to do if he/she is left jobless or if he/she has spent years trying to find a job through employment bureau. What can be done to improve one's financial situation to at least a certain extent? In this paper I will provide a brief description of every type of (manual) trades, all the activities that can be preformed through trade, who must and who does not have to keep the books, registration for VAT and leaving a VAT system, and finally how tradespeople can make a profit. This paper comprises all the relevant information, also valuable for future taxpayers who would like to start their own business. The paper also provides certain examples of forms, tables, pictures and examples of other papers that can be helpful when one is not sure how it all should look like and how to take care of all the changes that happen from year to year.