BUSINESS

Entrepreneurs cracking under tax burden

PROKOPIS HATZINIKOLAOU

TAGS: Economy

A heavy tax burden and high social security contributions have forced thousands of freelance professionals to close shop or team up with others in order to reduce their operating expenses and obligations, according to data presented by the Independent Authority for Public Revenues.

Tax officials estimate that tax evasion has also increased among professionals looking to reduced the burden of taxes and contributions they are called to carry. This is a ongoing phenomenon, the authority’s figures confirm, as in January revenues from the 20 percent income deductions of freelance professionals went down 12.13 percent year-on-year to 59.26 million euros, from 67.43 million in January 2017.

There was also a decline in revenues from the business tax, indicating that many firms and freelancers were forced to shut their operations, as takings fell 4.6 percent in January. At the same time data from the General Commercial Register (GEMH) showed an annual rise of 58.5 percent in new general partnership companies.

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