Tax bill to benefit freelancers most

Freelance professionals and all personal enterprises in general are the biggest winners of the new tax bill. As of 2020 they will enjoy a reduction in their tax bills amounting to or in some cases even exceeding 1,300 euros each, thanks to the slashing of the basic tax rate from 22 to 9 percent.

The self-employed and freelance professionals with annual incomes up to 10,000 euros will see their income tax drop by about 60 percent, or 1,300 euros. Bear in mind that the self-employed who are dependent on up to three employers each are taxed from the first euro of their earnings as the tax-free threshold does not apply to them.

However, in order to contain tax evasion, the government is asking freelance professionals to make online payments (via e-banking or credit and debit cards) worth a minimum of 30 percent of their annual income - or face a penalty.

The new...