Saturday Jul 26, 2014 Search
Weather | Athens
32o C
23o 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)  
Trade deficit grows 9.5 pct in Jan-May
Number of 5-star hotel rooms rises 31.4 percent in four years
Greeks get slightly less downbeat
Banks reluctant to issue credit
MP steps in to get power back on at invalids home
An MP had to intervene to get the electricity supply restored to the home of a man who requires a machine to help him breathe just days after a woman on life support died in Hania, Crete, as...
Civil servants who changed contracts to undergo checks
State inspectors are to begin checking the circumstances under which thousands of people working in the public sector had their fixed-term contracts switched to open-ended deals in the years...
Inside News
SOCCER
Ranieri says he has little to change in Greek national team
The Hellenic Football Federation (EPO) presented Claudio Ranieri as the new Greece coach for the next couple of years, after the Italian manager signed his contract in Athens on Friday. I l...
SOCCER
Olympiakos downs AC Milan 3-0 in friendly
Greek champion Olympiakos defeated Italy's AC Milan 3-0 late on Thursday in a friendly match that launched the International Champions Cup in Canada and the US. The result, with goals from A...
Inside Sports
TALK
What lessons can we draw from antiquity?
Our theme is limits. And we are gathered here at this limit of Europe, close the to sea: the limitless, the boundless. And we face all sorts of limits. There are the limits of knowledge fa...
COMMENTARY
Forty years of shortsighted party policies
It is 40 years since the restoration of democracy, and the two main parties which were established in 1974 and determined the countrys fate since then are unable to act their age. For decad...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Trade deficit grows 9.5 pct in Jan-May
2. Number of 5-star hotel rooms rises 31.4 percent in four years
3. Greeks get slightly less downbeat
4. Banks reluctant to issue credit
5. MP steps in to get power back on at invalids home
6. Civil servants who changed contracts to undergo checks
more news
Today
This Week
1. Greek coast guard picks up 77 migrants off Myconos
2. Draghi safety net becoming blindfold as bonds soar
3. Godfather, 35, shot at Karditsa christening dies
4. Aegean Airlines resumes flights to Tel Aviv
5. Thousands of dead fish surface in Lake Pamvotis
6. Police report points to less crime in 2014
Today
This Week
1. Greece seen in third bailout as bonds not enough, economists say
2. Climber dies in Mount Olympus fall
3. Greek sovereign debt at 174.1 percent of GDP in first quarter
4. Unequal after death
5. Hedge fund Dromeus turns Greek tragedy to triumph with 160 pct gain
6. Quadriplegic woman on life support 'dies due to unpaid power bills'
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.