BUSINESS

Taxpayers to be billed in advance

By Prokopis Hatzinikolaou

Pensioners and salary workers who make as little as one euro in annual revenues from properties or freelancing will have to pay a tax deposit equal to 55 percent of their income for the following year, according to officials at the Finance Ministry.

The officials add that the income tax is a single charge, and if it stems from two or more sources of revenues (i.e. salaries or pensions plus freelancing or properties), the tax paid in advance for next year will amount to 55 percent of the total tax paid for this year.

Salary workers and pensioners with just one source of income, as well as some self-employed, will be exempted from having to pay a tax deposit for the following year.

For the 2013 financial year, the income tax of which is to be paid later this year, there are different tax rates for incomes from salaries, pensions, rents and freelancing.

For example, a salary worker with an annual income of 20,000 will pay 2,300 euros in tax (given the tax discount of 2,100 euros). If he also has an income from properties amounting to 12,000 euros per year, he will pay tax of 1,200 euros for that – i.e. a total of 3,500 euros. On top of that this year he will also have to pay a 55 percent deposit on next year’s tax, bringing the sum to 5,425 euros. When the solidarity levy of 640 euros for the above incomes is added, the total tax to be paid this year will reach 6,065 euros, which is over a fifth of his annual income. readers are reminded that the solidarity levy amounts to 1 percent of incomes between 12,001 and 20,000 euros and 2 percent for incomes between 20,001 and 50,000 euros.

Still, accountants, tax officers and MPs from the two governing parties have raised the issue of the high tax demands with the Finance Ministry, although they are yet to receive a response. The questions have been forwarded to the ministry’s political leadership.

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