Sunday November 23, 2014 Search
Weather | Athens
18o C
10o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Ministry tables tax bill that cuts exemptions, thresholds

 Households, companies to be hit with greater hike than expected

By Prokopis Hatzinikolaou

The new tax bill that the Finance Ministry submitted in Parliament on Thursday night adheres to what the countrys creditors have dictated in a bid to save some 2.5 billion euros, with virtually all taxpayers sharing the burden of the fiscal streamlining.

Abolishing tax exemptions combined with the radical reform of tax brackets for salary workers and pensioners and the creation of a special set of brackets for the self-employed will lead to major tax increases for households and companies as regards 2013 incomes and profits.

The highest tax bracket for salary workers and pensioners will have a rate of 42 percent and affect annual incomes in excess of 42,000 euros, while the tax-free threshold of 5,000 euros per year has been abolished and replaced by a maximum tax reduction of 2,100 euros for incomes up to 21,000 euros per year; this will be without the collection of receipts. This reduction will shrink by 100 euros for each 1,000 euros of income on top of 21,000 euros, up to incomes of 42,000 euros that will see no reduction at all. A second tax bill, which may be tabled in January, will provide new incentives for tax payers to collect receipts.

The three brackets created provide for a tax rate of 22 percent for revenues up to 25,000 euros per year, 32 percent for revenues between 25,001 and 42,000 euros, and 42 percent for annual revenues of more than 42,000 euros. The additional tax-free thresholds for families with children have also been abolished and replaced by benefits.

The self-employed and small enterprises will suffer significant tax hikes as their incomes will be taxed from the first euro as of next year. It is strange, however, that revenues from work are taxed at a maximum rate of 42 percent, while revenues from rents have a maximum rate of just 33 percent.

ekathimerini.com , Thursday December 13, 2012 (22:56)  
Fitch keeps Greek rating at B, outlook stable
More cash for banks with same papers
Growth to fuel rise in revenues
Commercial property draws interest from investors
Cyprus on agenda in Biden visit to Istanbul
The prospects for the resumption of stalled peace talks on Cyprus and the issue of energy security were among the matters discussed on Saturday by US Vice President Joe Biden and Turkish gov...
PASOK nixes Papandreou leadership challenge
The junior coalition partner PASOK rejected over the weekend a proposal by the partys former leader and ex-premier George Papandreou for the party to call an emergency congress and a subseq...
Inside News
INTERVIEW
Tokyo hopes to change the world
The 2020 Summer Olympic and Paralympic Games in Tokyo will serve as a springboard for the rebuilding of Japans image and economy following the triple blow of the earthquake, tsunami and nuc...
BASKETBALL
Big win for Greens, tight one for Reds
Panathinaikos scored a crucial as well as emphatic away win at Turow on Thursday that should see it qualify from its tough group to the top 16 of the Euroleague, while Olympiakos saw off vis...
Inside Sports
COMMENTARY
Is Europe paying attention?
Barack Obama brought hope to the entire world when he was elected president of the United States in 2009 and then again in 2012 for a second term. During his first visit to Europe, marked by...
EDITORIAL
A reasonable agreement
Greece cannot and should not allow itself to be left without a safety net to make up for any funding needs that may crop up after the end of the year. Without such protection it would be at ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Cyprus on agenda in Biden visit to Istanbul
2. PASOK nixes Papandreou leadership challenge
3. Troika tests govt nerves as budget rift persists
4. Climate change to hit farming, Greek coastline
5. Piraeus nightclub shooting leaves 3 seriously injured
6. London court to rule on extradition of former judge
more news
Today
This Week
1. PASOK nixes Papandreou leadership challenge
2. Piraeus nightclub shooting leaves 3 seriously injured
3. Climate change to hit farming, Greek coastline
4. Fitch keeps Greek rating at B, outlook stable
5. Cyprus on agenda in Biden visit to Istanbul
6. Troika tests govt nerves as budget rift persists
Today
This Week
1. Double quake on Atalanti fault line rattles Greek capital [Update]
2. Greece and Poland switch roles as young Greeks head to vibrant Eastern European country for better prospects
3. Anti-junta uprising anniversary to be marked amid tight security
4. Biden heads to Istanbul amid tension over Cyprus EEZ violation
5. Carlsberg takes control of Greek brewer Olympic Brewery [Update]
6. Every age has its collaborators
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.