NEWS

Tax-storm for the next six months

Tax-storm for the next six months

The next six months will be difficult for millions of taxpayers, who by the end of July through December will be asked to pay six taxes, which collectively reach 11 billion euros.

In the second half of the year, taxpayers will have to pay income tax, special solidarity levy, trade tax, luxury tax, property tax and road tax of 2015, as mentioned by “Kathimerini”.

1. Income tax. The 5.5 million taxpayers will pay higher income tax compared to 2013, due to recent changes in taxation for the abolition of duty-free limits for employees, retirees, repealing the tax-free for children, reduction in tax exemptions and discounts. Also this year the rental income is taxed separately and isn’t included in the income tax bracket. The amount to be paid amounts reaches 5.3 billion euros. Note that the Finance Ministry is planning to extend the deadline for submitting tax returns until 25th of July 2014.

2. Solidarity levy. Imposed on incomes above 12,000 euros. Specifically:
For total net income 12,001 euros to 20,000 euros, the special levy is calculated at 1% on the whole amount.
For total net income of 20.001 euro and 50.000 euros, the special levy is calculated at 2% of the whole amount.
For total net income of 50,001 to 100,000 euros, the special levy is calculated at 3% of the whole amount.
For total net income of EUR 100,001 or more, the special levy is calculated at 4% on the whole amount.
In the second half of the year 1.178 billion euros will be paid, while 800 million has already been paid through monthly withholding.

3. Trady Tax. Imposed on traders, natural or legal, who have been active in the business year 2013. Overall 227.7 million euros will be paid.

4. Luxury tax. People liable to pay tax luxury are taxpayers that during 2012 had in their possession: vehicles with engines of 1,929 cc and above, pools and aircrafts. The amount paid will reach 141 million euros.

5. Road tax. The Finance Ministry expects to receive in 2014 the amount of 1.53 billion euros.

6. Property tax. From July 2014 taxpayers will begin to pay property tax. It will affect all classes of property, buildings or land. It will be imposed independently to each property and will be calculated on the surfaces. The Finance Ministry expects to collect the amount of 2.65 billion euros.

Additional tax on real estate. Imposed on the value of buildings and settlements with a free threshold and a progressive scale. The tax-free threshold will be increased to 300,000 euros from 200,000 euros, which is in force today.