BUSINESS

Multibill of prior actions set to go to Parliament in next few days

PROKOPIS HATZINIKOLAOU

TAGS: Taxation, Finance

The omnibus bill the government is preparing to cover the prior actions required for the second bailout review is in its final stage of drafting and will include tax exemption cuts and abolitions.

Sources say it will be submitted to Parliament in the next few days and will include the abolition of the 1.5 percent reduction on income tax withheld at source from salaries, a reduction in the exemption of medical expenditure, a change in the taxation of seafarers and a 155-million-euro reduction in the heating oil benefit from 2018.

The bill is also understood to include clauses on taxing the so-called “shadow hospitality” sector (including those who rent out apartments on Airbnb and other peer-to-peer home sharing sites), as well as measures regarding electronic transactions (via credit and debit cards and on the internet) and the voluntary declaration of hidden incomes.

Salary workers, pensioners and farmers will also have to make payments by credit/debit card or electronically in order to meet their tax-free threshold.

Airbnb-style rentals will start being taxed as of January. Owners will have to register the rentals they advertise (on Airbnb, Homeaway, Flipkey, Housetrip etc) with a special state agency or risk a fine of up to 50,000 euros. They will also have to pay a special tax of 5 percent per night’s stay, as well as income tax equal to that of long-term rentals, ranging from 15 to 45 percent.

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