ECONOMY

Tax overhaul draft sees no declarations for single incomes

Taxpayers with just one source of annual income will not need to submit an income tax declaration as of next year according to the draft of the new tax code.

According to the new set of regulations, which will be put up for public consultation in the next few days and which was seen by Kathimerini, taxpayers whose tax is deducted directly from their salaries and have no other source of income, or who receive an annual income exclusively from investment revenues taxed from their source, will not have to submit a statement as 2014.

The bill, which is expected to complete the overhaul of the Greek taxation system as required by foreign creditors, also provides for a new system for withholding taxes from salaried workers, an increase to 90 percent of the tax paid upfront by the self-employed and enterprises, and an earlier submission date for declarations, by end-March at the latest.

The bill further abolishes the tax-free threshold on severance pay, which will be taxed from the first euro, as well as the supplementary tax on revenues from property utilization, currently ranging between 1.5 percent and 3 percent. It also specifies the expenditures that will be exempt and the kind of spending that is not recognized by authorities as part of annual expenditure.

The draft contains nothing about personal assets being used to determine taxpayers’ incomes, nor is there any mention of taxpayers having to collect receipts. There is, however, an article that has been left unfinished, probably as the government awaits feedback from its creditors. Article 24 of the new tax bill is titled “Indirect Method for Determining Incomes” but remains void.

Last week the ministry published the indirect inspection methods it would be using to calculate incomes based on real estate, bank deposits etc. This in effect renders needless the existing system of assessing income based on personal assets.

Deputy Finance Minister Giorgos Mavraganis has said in the past that the existing method of calculation through assets and the collection of receipts will be abolished, so it appears that the aim is for these changes to take effect as early as next year.