Taxation from the first euro for freelancers

Based on the Troika estimates for Greece, presented at the Eurogroup in Brussels, the market will suffer the greatest drop since the start of the crisis.

 

According to the auditors' data which has not yet been finalized, private consumption expenditure will fall to 134.1 billion euros in 2013, decreased by 11.1 billion (-0.8%) compared to the estimation of 145.2 billion for this year. The reduction in demand will be unprecedented, as in 2011 it had fallen by 7.5 billion euros and in 2012 by 10.4.

 

The money that would have flowed to the market is expected to largely absorb the new austerity measures amounting to 7.9 billion euros in 2013 and a total of 13.5 billion by 2014. However, the bill advances dangerously toward 20 billion euros for 2015-2016 as it provides for unspecified measures of 6.8 billion and not 4.8 billion as reported in the mid-term tabled for a vote in parliament.

 

The memorandum draft also calculates additional revenue through fiscal measures such as:

 

-       3 rates (probably 21%, 35% and 46%) instead of the current 8 for employees and pensioners

-       elimination of the 5,000-euro tax free limit for professionals and a special scale of 26% for the first 50,000 euros and 35% on additional earnings

-       26% tax rate on corporate profits and 10% on dividends

-       restriction of exemptions and deductions of costs regarding interest on mortgages, costs of life insurance, tuition fees for tutoring centres etc

-       conversion of the tax exemption provided for children to an allowance that will be paid based on income criteria

 

Under these circumstances, there is also a provision for further increase in unemployment, particularly in early 2013. The year is expected to close with 1,186,200 unemployed, compared to the 1,183,000 of this year, before starting to decline - as it is estimated - to 1,083,000 unemployed in 2014 and 996,000 in 2015.