IN ONE OR TWO DOSES ... the "package" of concessions
Implementation orbit enters the government's plan to change the fiscal policy mix.
Comes the end of the evidence examined diaviosis.To measure should apply from the 2022 or 2023, once it has fully operational electronic periousiologio the tax authorities………..
examined, indeed, the possibility of abolishing the living evidence be included in the "package" of tax cuts will legislated this year either with one or two tax bills.
The government plans, also, large-scale improvements in the regulation of 120 installments for debts to the State, with principal thereof to reduce the amount of the minimum payable monthly dose of 30 to 20 per month not only for those who owe up 3.000 euro but for everybody borrowers who qualify in this setting.
examines, Moreover, promote measures to further growth of electronic trading and the active combat tax evasion and the underground economy.
These measures will provide a significant reduction of the limit up to which the use of cash is allowed to make retail transactions, and increasing the amount of annual expenditure should repay employees, pensioners and professional farmers by electronic payment instruments (through e-banking or debit card or credit or prepaid or using an electronic wallet etc.) in order to safeguard the tax-free income threshold.
The government intends to implement from now in orbit its plan to change the fiscal policy mix, implementation filoependytikon options and boost liquidity in the real economy, which aims to strong and sustainable growth of the Greek economy. This ambitious plan includes the implementation of a rich package of tax relief households and businesses, which has been estimated to cause budgetary costs 6 billion. euro in four years depth.
Prime Minister Kyriakos Mitsotakis seeks to file directly in the House first tax bill with some of these positive settings, which can be applied directly, while, in second phase, autumn of this year intends to file a second tax bill establishing a clear timetable for the gradual implementation of all other election promised positive tax measures, four years in depth.
IN ONE OR TWO DOSES ... "package" relief for households & companies
The "package" of measures to integrate the new government either one or two tax bills include:
> RULES WILL APPLY FROM 2019
1) Improving the regulation of 120 monthly dose is to date with taxes.
particularly, will be provided:
* Reducing the minimum monthly dose of 30 to 20 euro for all borrowers, provision would mainly favor those who were 2017 annual income up 10.000 euro and have the IRS amounts 2.400 until 3.600 euro, as they will allow them to repay their debts to them 120 monthly installments 20-30 euro each. but will be favored and in debt up mikroofeiletes 2.400 euro, since the introduction of the minimum monthly installment of the 20 to 30 euro will increase automatically, largely, the number of doses in which they can repay their debts. B.C. amount borrower 2.000 euro can now pay off in 100 doses of 20 euro each, while the current arrangements is required to repay the debt in 66 monthly installments 30,30 euro each.
• Reducing the interest rate at which the adjustable debts incurred by 5% in the 3%.
• The inclusion of more business in the provisions providing for the possibility of repayment of debts up to 120 monthly installments.
• Framework for favorable treatment of consistent taxpayers.
2) Improving provision provides for the reduction of VAT rate from 24% in the 13% foodstuffs and focus, that for each and every case of food and beverages to apply the reduced rate 13% (not provided eg. coefficient 24% for coffee and servirizomeno 13% for coffee sold in supermarkets).
> ADJUSTMENTS TO BE IMPLEMENTED BY 2020 AND AFTER
3) Establish new progressive scale of personal income tax. The new tax scale, which will take effect from the income year 2020, will emerge from the following changes:
• Reduction of the minimum tax rate of 22% in the 9% for incomes up 10.000 euro, maintaining the tax-free income threshold at the level of 8.600-8.700 euro for employees, pensioners and professional farmers. Maintaining the tax-free will be either complete abolition of the tax deductibility of 1.900-2.100 Euro and a nominal definition of tax exemption between 8.600-8.700 euro or significant reduction of the tax credit, that by dividing the new rate 9% showing indirect tax free threshold 8.600-8.700 euro.
• Reducing the maximum tax rate from 45% in the 42%.
• Streamlining all other income tax rates and tax brackets remodeling main target tax relief to the middle class.
4) Introduce additional tax-free income threshold 1.000 euros for each dependent child.
5) Gradual reduction of corporate income tax rate (companies) and other legal entities from the 28% in the 20%. The reduction will be made in two annual installments: from 28% in the 24% for using 2020 and to 20% for using 2021.
6) Reduction of taxation on dividends from 10% in the 5%.
7) Gradual reduction of VAT rates from 24% and 13% in the 22% and to 11% from 2020 until the 2023.
8) Gradual abolition of the Special Solidarity Contribution
9) Reduction of the trade charge as 50% for 2019 or for 2020 (year tax statements 2020 or 2021) and complete abolition of the 2020 or 2021 (year tax statements 2021 or 2022).
10) Remove the living evidence (the objective costs of Article 31 of the Income Tax Code) no later than 2023, once it has fully operational by the Independent Authority Revenue e periousiologio and will now be possible to control all the assets of Greek taxpayers.
11) Measures to re-growth of electronic trading and the active combat tax evasion and the underground economy. Objective measures, which are considered to take effect from 1-1-2020, It is to drastically reduce the use of cash in the daily financial transactions of taxpayers and businesses to "spend" most of their daily turnover through POS machines or other electronic payment instruments, to have to show larger tax base amounts in submitted VAT and income tax returns.
The measures under consideration provide:
a) Increasing the amount of annual expenditure should repay employees, pensioners and professional farmers by electronic payment instruments (through e-banking or debit card or credit or prepaid or using an electronic wallet etc.) in order to safeguard the tax-free threshold.
According to reports, the sliding scale of rates of annual income should cover electronic payments with the above categories of taxpayers to ensure the tax-free income threshold will be amended as follows:
• For the first 10.000 euros of annual income the percentage that will be required to cover with electronic payments will increase from 10% in 15%. namely, taxpayer with annual income 9.800 euro will now need to pay by card or through e-banking or other electronic payment methods amount of annual expenditure for purchases of goods and services, totaling 1.470 euro (15% X 9.800 euro) to qualify for tax-free. With the currently applicable rate 10% enough to pay back amount 980 euro (10% X 9.800 euro) through cards or other electronic payment methods to maintain its tax free.
• For the next 20.000 euros of annual income, ie the portion of the annual income from 10.000,01 euros to 30.000 euro, the required coverage with electronic payments will increase to 20%, from 15% is today. So, A taxpayer with annual income 30.000 euro will now need to pay electronically Payment amount of annual property purchase costs and services totaling 5.500 euro (the 15% proton10.000 of euros of income and 20% the next 20.000 euro of income) to guarantee the annual tax deduction of 1.800-2.000 euro, applicable to him. At current rates of coverage 10% and 15% enough to pay a total amount 4.000 euro (the 10% of the first 10.000 euro of income and 15% the next 20.000 euro) to maintain its tax free.
• For the part of the annual income of more than 30.000 euro, the required coverage with electronic payments will increase to 25% from 20% that stands.
b) Significant reduction of the limit up to which the use of cash is allowed to perform a financial transaction involving goods or services market. This limit will be reduced from 500 to 400 or 300 euro or even to 200 per transaction.
The modification will occur, tax value data 400 or 300 or 200 euro and above issued for selling goods or providing services to individuals should be repaid by recipients, buyers of goods or services, exclusively by the use of means of payment card or other electronic payment instrument, including but not limited to bank transfer, payment payment account, an electronic wallet.
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