Tax increase on deposits? interest
The government is considering an increase in interest taxation for deposits and the collection of a solidarity levy from more taxpayers.
The new tax bill being put together by the Finance Ministr is now expected to include additional cash measures in a desperate effort to increase revenues from next year after a significant shortfall this year.
Sources suggest that the new bill will provide for interest on bank deposits to be taxed according to the general income rate, and not with at flat, 10 percent rate used today. This would mean that many taxpayers will get a tax of up to 45 percent on their interest. Other taxes on financial transaction are also being considered, according to the same sources.
The ministry is also considering the extension of the solidarity charge to taxpayers with annual incomes below the current threshold of 12,000 euros. The new threshold could be set at 8,000 euros per year.
A flat tax rate of 20 percent on earnings of the self-employed is also under consideration.
