The TAXISnet electronic portal is expected to open at the end of March for the submission of the tax returns.
In light of the process of submission of tax returns, the taxpayers must know that any revenues which were earned in 2019 will be assessed based on the framework which was in place until December 31, 2019 and the tax contained in the 2020 notices of assessment will fluctuate at the same levels as last year, provided the revenues have not changed.
More specifically, for the taxation of the revenues which will be declared this year the following apply:
- Tax scale: Revenues from salaries, pensions, individual businesses and agricultural activities will be taxed based on a factor of 22% – 45%. More specifically, a tax of:
– 22% is imposed for annual revenues up to 20,000 Euro.
– 29% is imposed for the part of the revenues over 20,000 Euro up to 30,000 Euro
– 37% is imposed for the part of the revenues over 30,000 Euro up to 40,000 Euro
– 45% is imposed for the part of the revenues which exceeds 40,000 Euro.
- Tax credits: Salaried employees, pensioners and farmers by occupation will have an income tax credit of up to 1,900-2,100 Euro which translates into an indirect tax-free income limit. More specifically, for the taxpayers with revenues up to 20,000 Euro from salaries and pensions, as well as annual revenues up to 20,000 Euro from agricultural activities earned by farmers, there will be a tax credit in the following amounts:
– 1,900 Euro, if there are no dependants.
– 1,950 Euro, if there is one dependant child.
– 2,000 Euro, if there are two dependant children.
– 2,100 Euro, if there are 3 or more dependant children.
How to guarantee the tax credit
The taxpayers who are entitled to the tax credit of up to 1,900 -2,100 Euro, must have paid, in 2019, via electronic means of payment (by credit or debit cards or via e-banking) expenses for the purchase of goods or the provision of services equal to a percentage of:
– 10% of their annual income, real or imputed, provided said income amounts to 10,000 Euro or less,
– 10% on the first 10,000 Euro and 15% on the amount in excess of said 10,000 Euro, provided their annual, real or imputed, individual income is between 10,001 to 30,000 Euro and
– 10% on the first 10,000 Euro, 15% on the following 20,000 Euro and 20% on the excess amount, provided their annual, real or imputed, individual income is over 30,000 Euro. The “uncovered” amount will be taxed at 22%.
- Revenues from real estate property: Revenues from real estate property will be taxed based on a factor of 15% to 45%. More specifically, the following scale factors apply:
– 15% up to 12,000 Euro.
– 35% on the part of the annual income between 12,001 and 35,000 Euro.
– 45% on the part of the annual income over 35,000 Euro.
- Special solidarity contribution: Taxpayers with revenues of over 12,000 Euro will pay a special solidarity contribution which is calculated incrementally based on a factor of 2.2% to 10%.
- Prepaid taxes: An advance income tax payment for the following year is imposed based on a factor of 100% of the main income tax, to the taxpayers who declare revenues from business and/or agricultural activities, as well as the taxpayers who are assessed based on living standards and the acquisition of assets.
- Business tax: A business tax of 400 to 650 Euro is imposed on any taxpayer who exercises a business activity: Taxpayers who exercise individual business activities will pay for the financial year 2019 an annual business tax which amounts to 650 Euro and a further 600 Euro for each branch.
Newsroom, CNN Greece
04:00 Wednesday, March 04, 2020