BUSINESS

Tax bill to benefit freelancers most

PROKOPIS HATZINIKOLAOU

TAGS: Taxation

Freelance professionals and all personal enterprises in general are the biggest winners of the new tax bill. As of 2020 they will enjoy a reduction in their tax bills amounting to or in some cases even exceeding 1,300 euros each, thanks to the slashing of the basic tax rate from 22 to 9 percent.

The self-employed and freelance professionals with annual incomes up to 10,000 euros will see their income tax drop by about 60 percent, or 1,300 euros. Bear in mind that the self-employed who are dependent on up to three employers each are taxed from the first euro of their earnings as the tax-free threshold does not apply to them.

However, in order to contain tax evasion, the government is asking freelance professionals to make online payments (via e-banking or credit and debit cards) worth a minimum of 30 percent of their annual income – or face a penalty.

The new tax bill is expected to be submitted to Parliament in mid-November and provide for a 9 percent tax rate for incomes up to 10,000 euros and 22 percent for the next 10,000 euros. The existing tax rates for income brackets above 20,000 euros are to be reduced by one percentage point each.
 

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