BUSINESS

Confusion over advance payment of income tax

By Prokopis Hatzinikolaou

Another clause in the new tax code is up for amendment after the Finance Ministry was hit with a barrage of complaints over the advanced payment of tax for certain taxpayers.

The original wording of the new regulation suggests that all salaried workers and pensioners will have to pay a 55 percent advance on their income tax. It is also unclear which economic year the regulation is referring to.

There are several problematic areas in the legislation, some of which run counter to the intentions of the ministry itself. The ministry said that it did not intend to impose the payment of more than half of the following year’s tax on all salaried workers and pensioners who also have revenues from freelance work or rented properties.

In a statement issued on Friday, the ministry clarified that the advance payment of tax will apply “only to income from business activity.” Nevertheless the existing law states the opposite, so the ministry will need to draft an amendment soon.

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