ECONOMY

Tax discounts for invested funds

tax-discounts-for-invested-funds

Taxpayers who reveal to the state previously undeclared incomes held in local or foreign banks may receive a tax discount of up to 70 percent, with the exact level of the discount depending on the investment toward which the funds will go, according to the government plan seen by Kathimerini.

The biggest discount will be reserved for those who choose to put their undeclared incomes into state bonds or treasury bills, with their tax being reduced by 70 percent. On the contrary, if the money is simply kept in a deposit account at a local bank the tax discount will be no more than 20 percent, while if placed in a foreign bank there will be no discount at all. In the latter case the money will only be legalized, as anyone declaring their previously hidden incomes will be granted amnesty from fines or penalties.

The plan specifically provides for a discount ranging from 20 to 60 percent for funds declared and invested in the creation of a company in Greece or in a company or fund that makes investments in Greece, including in real estate assets.

The tax rate that will be imposed will be the one that applied in the year the income was generated and it will be up to the taxpayer to stipulate which year this was. For example, it would be more beneficial to declare that income was generated in 2009, when the top tax rate was 40 percent. Today it stands at 42 percent.

The Finance Ministry’s terms will be granted to taxpayers with undeclared incomes in bank accounts in Greece or abroad, in mutual funds, in bonds and generally in foreign securities, as well as in the stock market and trading platforms. The legalization does not concern funds that have not gone through the banking system, i.e. those to be presented by taxpayers without any documents. Still, money that was in a bank and has been withdrawn can be legalized even if it was untaxed.

Through the bill, which will be submitted to Parliament for ratification within the month, the Finance Ministry wants to avert anyone holding illegal money from covering past or future purchases while avoiding being taxed based on their assets.