New headache for gov’t from CoS ruling on freelancer levy
The country’s highest administrative court has ruled that the state cannot charge the levy for the exercise of a profession by freelancers in the first five years of their new occupation, which may lead to an increase in the state’s dues to Greek taxpayers.
The tax administration has recently seen the Council of State challenge several aspects of its conduct as the court has repeatedly found tax authorities to have interpreted legislation incorrectly.
This time the CoS ruled that when freelancers change profession, they should be exempt from the professional levy for the first five years – instead the tax authorities continued to impose the levy, which amounts to 650 euros per annum. It is therefore highly likely the government will be forced to return that money to those freelancers. The annual takings of the state from the professional levy come to some 500 million euros.