Saturday Jan 31, 2015 Search
Weather | Athens
16o C
13o 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)  
ECBs Constancio signals Greek waiver may end if program dropped
Greece starts countdown to cash crunch saying bailout over
How Greece can run out of cash and what ECBs Draghi can do
Varoufakis to meet French counterpart on Sunday
Europe waits for proposals from Athens
European officials believe that there is scope for an agreement with the new Greek government but that Athens will have to accept a compromise on its demands. Officials in Brussels told Kath...
Notes provide more clues on prison breakout scheme
Police have found handwritten notes exchanged between 22-year-old Angeliki Spyropoulou and jailed members of the Conspiracy of the Cells of Fire at a safe house in Loutraki, west of Athens, ...
Inside News
BASKETBALL
Panathinaikos preserves perfect home record
After yet another great performance at home, Panathinaikos defeated Galatasaray 86-77 in Athens on Friday to get to three wins in five games at the Euroleague top-16. The Greek champion shoo...
SOCCER
Gattuso: Unpaid OFI players couldnt buy food
Former coach Gennaro Gattuso has lifted the lid on the plight of crisis-club OFI Crete which has been banned from playing in the Super League until it clears mounting debts with its staff. T...
Inside Sports
COMMENTARY
Unyielding truth
Finance Minister Yanis Varoufakiss recent statement that growth does not mean having Porsche Cayennes in the narrow streets of Greece has made something of an impression and is now being ...
EDITORIAL
This is not a game
Greeces negotiations with its partners and creditors must be conducted in such a way as to safeguard the countrys real economy, a vital sector which prior to the elections had appeared to ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Europe waits for proposals from Athens
2. Notes provide more clues on prison breakout scheme
3. Drug prices are falling but volume sold remains high
4. Tsipras plays down chance of rift
5. Ex-revenues chief Theoharis claimes political interference
6. Journalist to head Greeces National Intelligence Service
more news
Today
This Week
1. US to work closely with Greece and EU to resolve differences, says White House
2. Merkel rejects debt writedown for Greece
3. Greek bank debt plummets as investors head for the exit
4. Greek markets plunge as SYRIZA digs in on challenge to austerity
5. Tsipras says Greece to repay ECB, IMF, reach deal with euro area
6. Greece seeks EU allies but Germany holds firm
Today
This Week
1. Greek Elections 2015 | LIVE
2. SYRIZA heads for historic victory but without majority
3. Greek Elections 2015 | LIVE
4. SYRIZA's win will test institutions
5. Greek Elections 2015: The day after | LIVE
6. EU must accept that Greek debt relief is inevitable
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.