30% of the income is electronic proof

Those who do not collect proof equal to 30% of their income through electronic transactions will be fined. Specifically, the fine will amount to 22% of the difference in the amount of evidence required by the taxpayer to be the one he eventually obtained. That is, if someone had to collect electronic receipts of 3,000 euros and presented 2,000 euros, they would pay a penalty of 1,000 euros. The fine to be paid is 220 euros (1,000 x 22%).

So from the new year, as the Minister of Finance Chr. Staikouras, employees, retirees, renters, freelancers and farmers should obtain proof of 30% of their income through electronic transactions. The minister also said that there are considerations of incentives for taxpayers to request electronic evidence from specific categories of professionals with high rates of tax evasion. Reportedly, one of the scenarios considered by the financial staff is some evidence of ‘double counting’, such as by doctors, lawyers, electricians, etc., but technically it seems to be extremely difficult to implement.

The tax bill is likely to lock in next Monday and will be held in public consultation Wednesday with the aim of submitting it to Parliament in mid-November. Based on what was announced yesterday on SKAI television by the Minister of Finance Chr. Staikoura, the tax bill to be submitted to Parliament will include:

1. Tax scale. Income up to EUR 10,000 will be taxed at a 9% rate. The next 10,000 euros will be taxed at a 22% rate. The tax rate that is currently 29% for incomes from 20,000 euros to 30,000 euros will be reduced to 28%. The next rate for incomes from EUR 30,000 to EUR 40,000 will be reduced from 37% to 36% today, while for the income step above EUR 40,000 the tax rate is reduced from 45% to 44% today.

2. Free tax. The tax-free threshold for unmarried is kept at the same level, ie EUR 8,636. For single-child families it will reach 9,000 euros (up from 8,863 today), although the government has pledged to increase it by 1,000 euros. For families with two children at € 10,000 (from € 9,090), with three at € 11,000 (from € 9,545) and € 12,000 for families with four children.

The tax-free threshold essentially results in a tax deduction:

• 777 euros for employed, retired and professional farmers without dependent children.

• 810 euros for employed, retired and professional farmers with one child.

• EUR 900 for employed, retired and professional farmers with two children.

• € 1,120 for families with three children.

• 1,340 for families with four children.

However, the above tax deduction is in full for those with incomes not exceeding 12,000 euros. Above this amount the tax deduction is limited. Specifically, for every EUR 1,000 raised in income over EUR 12,000 the tax deduction is reduced by EUR 20.

That is to say, a single man with an income of 12,000 euros has a tax deduction of 777 euros, while a single man with an income of 13,000 euros has a tax deduction of 757 euros, while with a 14,000 euro income the deduction “falls” to 737 euros. The tax deduction will be deducted for income above 50,000 euros.

3. Freelancers and in general all sole proprietors are as shown by the big beneficiaries of the new tax bill. Self-employed people will see a reduction in tax burdens by 2020 and in some cases exceed € 1,300.

4.Online transactions. As of the new year, all taxpayers (excluding seniors over 70) are required to collect electronic receipts amounting to 30% of their income. Today, incomes up to 10,000 euros require the taxpayer to make electronic transactions at 10% of income, that is, up to 1,000 euros, for incomes between 10,000 and 30,000 euros the percentage of online payments reaches 15% and incomes in excess of 30,000 euros, the rate goes up to 20%. Plus, starting January 1, a 30% rate will apply, regardless of income. For example, a taxpayer with a rental income of 15,000 euros would have to collect electronic evidence of 4,500 euros. In case he also has income from employee services amounting to 20.

source – kathimerini.gr

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