Income tax

Greek taxpayers are this year set to declare the lowest amount in taxable incomes (for 2020) since the country entered the eurozone in 2001, with that figure not even expected to surpass 70 billion euros.

Budget data for 2020 showed that the health crisis resulted in a considerable contraction in tax revenues, which missed their target by 7.6 billion euros. The lockdowns, the furloughs and the drop in corporate income tax deposits were the main reasons for the slump in tax takings, which is expected to continue in the first quarter of this year.

The Constitutional Court ruled on Tuesday that the Law on the new system of taxation of service pensions, which provides for the taxation of 85% of pensions exceeding the amount of 7,000 lei, is unconstitutional, said sources from CCR.

The annual minimum amount in online transactions required of taxpayers may be reduced to below the existing 30% threshold, given the market conditions. This is a decision the government will make in 2021, before the submission of income tax declarations.

Greece may have topped the chart in taxing corporations and individuals over the last decade, but the latest data show that taxes have been imposed in a haphazard fashion in this country.

The state budget showed a primary deficit of 9.06 billion euros in the year's first 10 months, according to provisional figures released yesterday by the State General Accounting Office, compared to the revised target for a primary deficit of €9.69 billion.

The government is about to complete measures seen attracting businesses and workers to Greece with the submission of a clause to that effect in a bill against smuggling.

Lawmakers were presented on Tuesday with a draft bill introducing a set of incentives aimed at enticing Greeks based abroad as well as foreign taxpayers and self-employed professionals to transfer their tax domicile to Greece.

In order to help bring the sector of renovation services out of the grey economy, in which no income is declared, the Ministry of Finance offers a discount on taxes when repairing a home, Club Z reports. The discount can reach up to BGN 200, according to a bill published by the Ministry.

Prime Minister Kyriakos Mitsotakis announced on Friday four new government initiatives meant to prop up hard-hit households and businesses, including an increase in the number of installments for income and property taxes and a small discount for the payment of annual tax dues in a lump sum ahead of the deadline for the first tranche.