Mid-term …tax raid

Wage earners, freelancers and real estate owners are in for a treat, because of the mid-term program for the period 2011-2015 which will be submitted for a parliamentary vote by the finance ministry this Monday, a vote which is required in order to receive the 5th installment and any other future aid toward our country. Specifically:

• a newly set up company under the name of “DEVELOPMENT FUND OF STATE PRIVATE PROPERTY SA” will handle all state property to be privatized in order to decrease the country’s debt
• the tax-free limit is clipped and will be implemented on incomes of 8.000 euros starting this year. Incomes of 8-12.000 will be taxed at 10%. Young people under 30, people with disabilities and pensioners over 65 are excluded as long as they are not exceeding 12.000 euros per year
• a cap of 300 euros is implemented to wage tax reduction with expenditure receipts
• more receipts for approval of the tax-free limit will be required, 25% instead of 10% for incomes up to 12.000. For incomes at 12-60.000 receipts of 3-15.000 will be required. A 10% fee will be implemented on those that won’t show the necessary receipts
• contributions to pension funds for voluntary insurance are recognized for tax exemption
• tax evidence for real estate, private cars, pools, yachts etc. is increased by 30-300%
• a 1-5% special solidarity levy is imposed on private incomes of over 12.000 euros, declared in the 2011-2015 statements, excluding the unemployed of OAED
• a special contribution to annual amounts of objective expenditure from ownership or possession of private cars over 1929 cc, yachts, aircraft, helicopters, gliders and swimming pools, as evidenced in the tax statements of the 2011 fiscal year
• 300-500 euro annual fee for professionals and freelancers, as long as they are holding type B’ and C’ books, if they have completed their 5th year in their profession. Professionals over 62, businesses in villages with a population of up to 500 people and islands with fewer than 3.100 inhabitants, are excluded
• professional and banking privacy as concerns the finance ministry do not apply to any element or information of financial and tax interest
• the taxation of real estate, donations and parental grants is increased
• VAT for goods and services is increased from 13 to 23% for: bottled water, tavernas, grill houses, pizza restaurants, fast food restaurants, cafeterias etc. Canteens operating in education or nursing companies or institutions, or social welfare institutions, are excluded
• a special annual fee of 200 euros per square meter is introduced for the operation of smoking areas inside casinos and entertainment centres of over 300 sq/m
• vehicular tax is increased by 10% in 2012
• heating oil prices are increased by 5 cents per litre
• a special tax is imposed on natural gas used as heating fuel