Greece is Preparing to Cut Income Taxes

Finance | September 16, 2019, Monday // 13:05|  views

Greek workers, retirees and self-employed professionals will see a significant reduction in their tax bills in 2020, says a bill that reduces the lowest income taxes to 9 percent from 22 percent for income to 10,000 euros, Kathimerini reported.

The bill will also include provisions for construction and tax cuts on business profits.

The bill is expected to be finalized by the end of next week and tabled in parliament by mid-October.

Overall, contract workers and retirees will see an increase in their monthly earnings from January, when their monthly tax will be reduced, while freelance professionals will feel this when they clear their tax returns in 2021. Specifically, taxpayers without children declaring income between € 8,636 and up to € 20,000 will receive discounts of up to € 177.

For example, under the new system, a taxpayer with an income of € 15,000 is currently paying € 1,400 in tax. By 2020 this will fall to EUR 1,223.

If the taxpayer has one child, the tax is reduced to EUR 1,133 from EUR 1,350, whereas if the family has two children, the tax is reduced from EUR 1,300 to EUR 1,043.

Similarly, taxpayers without a child and an annual income of € 20,000 are currently paying € 2,500. This will be reduced to 2323 in 2020.

However, if the taxpayer has one child, the tax will be reduced to 2233 from 2450 - a discount of 217 euros. If the family has two children, the tax will be reduced from 2400 to 2143 - 257 euros less.

Tax relief will reach up to € 370 for those with three children and an annual income of up to € 20,000.

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Tags: greece, income taxes, cut, reduce, EU, finance


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