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Greece and its creditors agreed about the new taxes

13 October 2012 / 12:10:05  GRReporter
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The Ministry of Finance reached an agreement on the new tax bill with the representatives of the ruling parties and the Troika. The final text provides for the retention of the eight indices for the employed and retired. The Troika insists that the bill be submitted to parliament by mid-November.

The final plan of the government for freelancers is relatively light, compared to the initial intentions. According to it, there is a possibility not to impose the burdensome 35% tax, regardless of the income. This tax was expected to bring 1.6 billion euro. After the meeting of the Troika, tax return was decreased, and especially for freelancers, it fell to not more than 900 million euro. The meeting of the representatives of the parties, which support the government, considered the possibility of two coefficients: 20% for the first 20,000 euro and 35% on amounts above this sum, or for an intermediate rate of 25%. The possibility of deducting all costs and social security contributions from revenues is also being discussed. Now only 10% of them are deducted from revenues.

Taxation on companies business profits and dividends will be reduced to 19%. The current tax rate on business profits is 20% and on dividends - 25%. This way the average tax will become 35% from the current 42.5%.

For those working on a labour agreement, it seems that the scale will not change and the eight indices will remain. The highest incomes will be taxed at the highest rate of 45%.

The Government has already decided to remove the non-taxable minimum for children, which is expected to bring 300 million euro and lawmakers are now looking for a way to gain returns. However, the number of people, who are given rights to such a minimum by public services needs to be calculated first, as well as to consider what public resonance this decision will bring.

It seems that from the beginning of 2013 it has already been decided that the taxation of interests on deposits will increase from 10% to 15%, and that tax exemptions to individuals will also be removed.

Tags: taxes taxation tax scale freelancers
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