FINANCE

Fresh incentives for beating tax evasion

fresh-incentives-for-beating-tax-evasion

The Finance Ministry is proceeding with considerable changes to citizens’ electronic transactions with various professional sectors as of 2022.

A bill to be tabled in Parliament by the end of the month will provide for a tax discount of up to 2,200 euros for those who get e-receipts in their transactions with professional categories ranking high on the tax evasion list. 

At the same time the ministry will introduce a lottery that will hand out up to €100,000 through a draw which citizens will enter depending on their online receipts and their family status.

The draft law under preparation provides for a 30% exemption from taxable income (with a proportionate reduction of the tax due) of the sum each taxpayer pays on an annual basis through online transactions for the purchase of goods or the payment of services from specific categories of corporations and freelance professionals. The measure will be activated in January 2022 and apply up until December 2025.

The list of professional sectors in question will include plumbers, electricians, lawyers, architects, refrigerator repair businesses, funeral parlors, personal care and healthcare companies, childcare providers, cleaning and maintenance services, taxis and limos, apparel cleaning, boat hiring, consultancy services, photographers, construction companies and professionals, gyms and dance schools.

The annual expenditure each individual makes electronically for visits to medical doctors, dentists, vets, private diagnostic clinics and other medical services (excluding purchase of drugs and hospital treatment) will count double toward covering the requirement for 30% of one’s annual income to be spent through online transactions.

The new lottery will start from this Christmas, offering €100,000 as the top prize, while every month one person will win €50,000, five will obtain €20,000, 70 will pick up €5,000 and 500 will collect €1,000, according to the planning so far.

The new system will also take into account other factors, such as the amount a household spends as a proportion of its income, and whether a family has three or more children, as households with more members and lower incomes are to get additional chances to win in the new lottery.