ECONOMY

Plan to ease tax burden on pensioners

plan-to-ease-tax-burden-on-pensioners

The retroactive dues pensioners are set to collect this month, amounting to 1.4 billion euros in total, will be taxed in 2021.

Sources say the amount pensioners will receive will not suffer a 20% tax deduction, as its taxing will follow the general regulation – i.e. the income tax rates and the standard income brackets used.

Notably, the Finance Ministry is considering allowing pensioners to declare their retroactive takings next year through supplementary tax statements, which will allow them to split their retroactive revenues into two years, given that the payment will concern two tax years – i.e. 2015 and 2016.