Tax exemptions for small businesses and freelancers

Tax exemptions for small businesses and freelancers

A deep breath for financial firms with a turnover up to 10,000 euros, as the Ministry of Finance with an amendment tabled in the Parliament, the bill "Support Measures and Development of Greek economy, organizational matters of the MOF and other provisions", exempts them from tax.

With this arrangement, from the new year small and medium-sized businesses with gross income up to 10,000 euros may be exempted. So, the opportunity is given to businesses and freelancers to choose whether to stay in the scheme or to exempt themselves from the quarterly tax returns.

This applies to professionals who are paid with press service, the so-called pads. According to Finance Ministry data, an estimated 420,000 businesses and professionals, who have low income, can from 1st of January 2015 to remove themselves.

With the new provision, if a freelancer chooses from the beginning of January 2015 to exempt from tax, then the services he delivers won't be charge with tax.

Note, however, that the market for materials for his work will be paid within the cost of the product plus the corresponding tax.

Those eventually excluded, who are entitled to a tax refund until today, won't get it, as the tax paid can't be deducted, but will be exempted from reporting and the costs involved.

From the Parliament, Gikas Hardouvelis stated that based on the data of 2013, the provision may benefit more than 400,000 companies, 42% of businesses that are subject to this tax.

"It's not populism, its pragmatism. We want to free businesses from today's shackles" he said and explained:

- First: small businesses are facilitated, as they won't have to charge tax on transactions carried out, thus gaining an competitive advantage

- Second: administrative costs for both businesses and tax administration are reduced

- Third: manpower to "run" controls on big businesses "where the party continues" is released

"Eligibility is voluntary" explained the minister stressing that it's a setting compatible with the rest of Europe. "We hope that we will help the small businesses that hurt" he concluded.