Tag:

Kostis Hatzidakis

TEF: 12 pay rises and 12 tax cuts – The winners – 2024-09-12 04:17:14

by Chief editor of world-today-news.com September 12, 2024

written by Chief editor of world-today-news.com

The Minister of National Economy and Finance Kostis Hatzidakis and Deputy Ministers Christos Dimas and Thanos Petralias proceeded to elaborate on the announcements made by Prime Minister Kyriakos Mitsotakis from the Thessaloniki International Fair on taxes, wages and pensions.

The Minister of National Economy and Finance Mr. Kostis Hatzidakis and the Deputy Ministers Mr. Christos Dimas and Thanos Petralias advanced the specialization of the measures announced by the Prime Minister at the TIF.

The new measures include permanent wage increases in the public and private sectors, targeted increases in benefits, extraordinary pension benefits, relief for freelancers and many other interventions.

Mr. Hatzidakis referred to 12 new salary increases and 12 new tax reductions announced by Mr. Mitsotakis at the TIF.

11:10 For his part, the Deputy Minister of Finance, Christos Dimas, stated that the new reduction of insurance contributions by 1 unit, will be by 0.5% from employee contributions and the remaining 0.5% from employer contributions in the health sector.

As a second important initiative, he mentioned the abolition of the fee for self-employed professionals.

He referred to the permanence of the return of the EFFK to agricultural oil.
Regarding the exemption from rent tax for 3 years, for owners who rent closed properties or if they convert a short-term lease into a long-term one, he said it applies to apartments up to 120 sq.m.

10:50 He also referred to the 20% increases in ensigns, with a monthly benefit of 22 euros net.

For the on-call pay of the NHS doctors, which will be taxed independently at a rate of 22%, he spoke of a monthly benefit of 100 to 210 euros, while he also referred to the incentives to attract doctors to barren areas.

10:45 The Deputy Minister of Finance Thanos Petralias, detailing the measures, noted that a new increase in the minimum wage is expected in April. He did not fail to mention that by April 2027 it will rise to 950 euros.

For the horizontal increase of salaries in the State, he said that they will follow the increase of the minimum wage. The increase will concern all salary scales. The breakdown per year noted that it depends on increases in the minimum wage.

10:38 12 tax reductions are also coming, as underlined by Mr. Hatzidakis

With regard to tax reductions, he referred to the following measures:

1% reduction in insurance contributions.
Abolition of the pretense fee for freelancers.
Permanentization of the return of the EFK to agricultural oil.
Tax exemption for vacant properties that are rented out.
Exemption from VAT for new constructions – extension also in 2025.
Removal of the landline fee for fiber optic connections above 100 Mbps.
Exemption from insurance premium tax for children up to 18 years old.
Tax relief for business expenses for new parents.
Reduction of ENFIA for residences insured against natural disasters.
Independent on-call taxation for doctors.
Incentives for corporate mergers.
Reduction of stamp duties

10:36 Mr. Hatzidakis spoke about 12 salary increases:

New pension increase from 1/1/2025
Emergency financial aid of 100 – 200 euros for pensioners with a personal difference
Horizontal public sector wage increase, so that the introductory one does not fall short of the minimum wage.
Expansion of the target achievement allowance
Increase in student housing allowance for regional universities
Increase by 20% the compensation of the night attendants
Incentive to attract doctors to troubled barren areas
An additional installment to OPECA child benefit beneficiaries
200 euro boost for EFKA disability allowance beneficiaries
A 200 euro boost for beneficiaries of the OPECA DISABLED allowance
200 euro subsidy for uninsured seniors
Additional 50% of the monthly allowance to beneficiaries of the Minimum Guaranteed Income

10:33 The increase in net primary costs without the new measures amounts to 2.8 billion euros. The total increase, however, may rise to 3.5 billion euros (including the new measures announced by Prime Minister Kyriakos Mitsotakis), as the government has reason to believe that something like this will be agreed with the Commission in the following days, noted Mr. Hatzidakis.

10:27 The Minister of Economy did not fail to mention the impressive improvement and acceleration of extrajudicial mechanisms and the new image on the beaches with the MyCoast application.

Snapshot from the press conference

10:26 Mr. Hatzidakis during his introductory statement noted that “we consistently continue to exceed the fiscal targets, we have an increase in funds for public investments as well as an increase in tax revenues, without an increase in taxes”.

10:22 “We are among the European Union countries with the fastest speeds. We have the largest percentage increases in investments”, emphasized the Minister of Economy and Finance.

10:20 “The government seeks to prioritize certain issues such as demographics, housing, the issue of climate change, but at the same time it faces requests from some social groups. Everything is moving forward based on budgetary possibilities.”

Source OT

#TEF #pay #rises #tax #cuts #winners

September 12, 2024 0 comments

Business

Salaries: The “x-ray” of the increases – Who will get and how much [πίνακες] – 2024-09-09 12:44:51

by Chief editor of world-today-news.com September 9, 2024

written by Chief editor of world-today-news.com

The strengthening of incomes has been one of the main issues for the government of ND, in the context of dealing with the consequences of punctuality, which affects households, although the first indications reflect the interventions (they will cost about 550 million euros in the state budget in 2025) as lower than actual needs. The economic staff of the government, under the Minister of National Economy and Finance Kostis Hatzidakis, specified some measures from those announced by Prime Minister Kyriakos Mitsotakis, in the context of the 88th TIF. On the forefront is the rise of pensions, the horizontal increase of the public sector payroll, so that the entry salary in the State does not fall short of the minimum wage in the private sector, the increase of some allowances.

It is worth noting that the financial staff left zero margin for new fiscal interventions and benefits even if the evolution of the budget this year is better than expected since, as explained by Deputy Minister Thanos Petralias, this year’s expenditure increase limit of 2.6% has already been met. He announced, however, that a supplementary budget will be submitted immediately for the new increase of the Public Investment Program after the imposition of a tax on the skyrocketing profits of the refineries, which will yield approximately 300 million euros. Of this 243 million euros will finance the emergency Christmas allowance for the vulnerable and the rest will be directed to the PDE.

With reference to the fiscal rules that will apply from 2025, Mr. Hatzidakis stated that the Commission’s initial direction was for an increase in net primary expenditure by 3% or approximately 3 billion euros. However, it is expected to expand to close to 3.5 billion euros with the relevant agreement being finalized at the end of the month and beginning of October.

Pensions

The increase is expected to move to 2%-2.5%, according to what was reported by the Minister of Finance, Kostis Hatzidakis. The increases will follow, as every year, the mathematical formula “(inflation + GDP) / 2”. The cost is close to 400 million euros, according to the government’s financial staff.

Personal difference allowance

Pensioners who will not receive an increase because they still have personal difference will be boosted before Christmas with the personal difference allowance of 100-200 euros. It concerns 670,000 who will receive: 200 euros for those who receive a pension of 701-1,100 euros. 150 euros for those who receive from 701-1,100 euros and 100 euros from 1,101-1,600 euros. The allowance will amount to 200 euros for pensions up to 700 euros, 150 euros for pensions from 701 to 1,100 euros and 100 euros for pensions from 1101 to 1600 euros. (Cost 100 million euros).

Entry level salary in the public sector

As the Deputy Minister of National Economy and Finance explained, there will be a link between the minimum wage in the private sector and the introductory wage in the public sector beginning on January 1, 2025, which concerns approximately 700,000 civil servants. The minimum wage is 830 euros and the introductory wage is 850 euro. The minimum is expected to reach 950 euros in 2027, according to Mr. Petralia, adding that the entry level will gradually reach there as well. The cost until 2027 is 500 million euros until then and more than 100 million euros for 2025. Today the entry fee in the public sector is 850 euros and the minimum is 830 euros but in the public sector the fees are paid for 12 months, which will continued in the private sector for 14 months.

In order not to fall short of the new minimum wage, proportional horizontal increases in the salary of civil servants will follow (as was done with the 70 euros in 2024). Thus, all civil servants will gradually receive a horizontal increase of 100 euros in total until 2027, so that the introductory salary will rise to 950 euros.

In the scenario of increasing the minimum wage by 40 euros per year until 2027 and in case the floor in 2025 is set at 870 euros, the salaries of civil servants will increase horizontally by 20 euros (gross) per month from 1 April 2025 with a net cost for the 8 months 72 million euros (gross cost 119 million euros), while for 2026 an increase of around 40 euros per month is expected and an additional 40 euros in 2027. Larger or smaller increases of the floor will proportionally increase or decrease the changes for the public payroll.

Night employment Enstolo

20% increase in compensation for night uniforms (police, fire brigade, coast guard, armed forces) from 1/1/2025. Hourly compensation will rise from 2.77 to 3.33 euros per hour. It is noted that night working hours vary by service (generally ranging from 10 to 64 hours). Indicatively, it is stated that for a police officer with 64 hours of night work, the said increase corresponds to 36 euros gross or 22 euros net per month. The fiscal cost is estimated at 25 million euros per year.

Doctors in barrens

Another measure is the incentive to attract doctors to problematic and barren areas. From September 2024, an increased incentive to attract and stay NHS doctors in problematic and barren areas of 200 to 600 euros per month depending on the specialty and the region is being established. Today it concerns approximately 3,300 NHS doctors, with the aim of increasing this number, and the annual budgetary cost amounts to approximately 16 million euros.

OPEKA child benefit

Beneficiaries of the OPEKA child benefit will receive an additional installment of child benefit. It concerns approximately 767,000 beneficiaries and the cost amounts to 70 million euros. It is recalled that the amount of the allowance amounts to 70 or 42 or 28 euros for each child for the first and second child per month, depending on the amount of income and to 140 or 84 or 56 from the third and for each subsequent child, per month .

Disability allowance of the e-EFKA

200 euro boost for e-EFKA disability allowance beneficiaries. These are approximately 37,000 beneficiaries of the non-institutional allowance and other disability allowances of the e-EFKA. The cost is 7 million euros.

OPECA disability allowance

A 200 euro boost for beneficiaries of the OPECA DISABLED benefit. It concerns approximately 185,000 people and the cost is estimated at 37 million.

Uninsured seniors

Uninsured elderly beneficiaries of the corresponding OPECA allowance (approximately 35,000) will receive an aid of 200 euros. The cost is estimated at 7 million euros.

Beneficiaries of a guaranteed minimum income

Beneficiaries of the minimum guaranteed income (about 205,000) will receive an additional 50% of the monthly allowance during the month of December. The cost is estimated at 22 million euros. It is recalled that today the amount of the allowance amounts to 216 euros per month for one-person households, for each additional adult in the household it is increased by 108 euros per month and for each additional minor member of the household by 54 euros per month. Therefore, a couple with 2 children who received an allowance of 432 euros, will receive an additional 216 euros of extraordinary allowance, i.e. a total of 648 euros.

Housing benefit

Increase of the student housing allowance for Regional Universities from 1,500 to 2,000 euros per year and 2,500 in case of cohabitation, from the current school year. It is clarified that the increase in the student housing allowance at the Regional Universities is a permanent aid measure – and not an emergency aid.

Achieving goals

There will also be an expansion of the goal achievement allowance, at a cost of 40 million euros, which concerns the State as a whole.

Source: ot.gr

#Salaries #xray #increases #πίνακες

September 9, 2024 0 comments

World

The next three-year plan and the Marshall Plan – What the government is preparing – 2024-09-04 00:41:18

by Chief editor of world-today-news.com September 4, 2024

written by Chief editor of world-today-news.com

All facts and information confirm that economic policy will keep its mix almost unchanged in 2025with only minor corrections and partial adjustments that do not change its means and tools, nor its goals.

It is widely believed that the government will stick to the current doctrine, avoid anything likely to disrupt current fiscal stability and not risk any crack in the flow of tax revenues, which are known to be largely determined by its collections. VAT and income tax.

Self-restraint

Spending will move within the limits of +3% provided for by the new stability pact for countries with high public debt, with the finance minister Kostis Hatzidakis to clarify, in view of the Prime Minister’s upcoming announcements in Thessaloniki, that the Commission urges the Greek government to restrain itself and not to exceed the increase of 3 billion euros in the 2025 budget from those of 2024. Something that the Minister of Finance probably shares , although he states that he has already committed about 1 billion euros for additional spending on Health and Education, another 1 billion euros for pensions and about another 850 million euros for defense.

The Prime Minister announced from Thessaloniki that in the three years until the 2027 elections, hundreds of investment projects will be developed, amounting to 100 billion euros.

He claims, as he says, something more than 3 billion euros, but basically he seems ready to adjust to the Brussels limit. On the revenue side, he is more categorical.

He recently extolled the outperformance of VAT revenues, which increased by 10.7% in the seven-month period from January to July, as well as the performance recorded in income tax collections, basically denying any substantial intervention in the area of indirect and direct taxation rates. .

The compass

He even defended them, stressing that he is not going to do anything that could destabilize fiscal stability. Explaining the doctrine governing the current economic policy he clarified that “we can’t spend more than we take in.”

Essentially, he adopted the absolutely conservative principle of the “balanced budget”, this is his compass and the government will walk with it, in order to maintain the favor of the international markets, the approval of the rating agencies and of course the tendency to reduce the public debt unchanged, so that to decline to almost 133% of GDP at the end of the current decade, as predicted by the International Monetary Fund.

It basically prepares for 2025 a scheme of controlled, without outbreaks, economic policy, which will not take risks, but will maintain the atmosphere and climate of fiscal restraint, even though the demands of society are multiplying and the times, geopolitical, climatic and productive, impose and other provisions beyond the insurance of public finances.

Options

The feeling is that the government of Mr. Mitsotakis it exploits, among other things, the deep crisis and weakness of the opposition, torn apart by internal conflicts and quarrels, to position itself adequately against the country’s problems and to claim other solutions. Essentially holding on, he has chosen to manage conservatively the first two years of the second four-year term and to “load up” from 2026 onwards, in view of the national elections in the spring of 2027.

Greek society is in a process of long tolerance and waiting and at some point it will explode and put everything at risk.

All the data and information confirm that in the period between 2024 and 2025 it will seek to fully exploit the stock of financial resources and tools, that is to prepare the full absorption and utilization of the resources of the Recovery Fund, the NSRF and to redirect to related areas the expenditure of the Public Investment Program.

The Prime Minister already last week announced from Thessaloniki that in the three years until the 2027 elections, hundreds of investment projects, public and private, will be developed in the remaining development political regions of the country, totaling 100 billion euros.

The investment leap

He even went so far as to talk about an investment jump similar to the post-war Marshall Plan, which, if developed, can completely change the country’s image and position in the wider region. The interesting thing is that it talks about a network of strengthening public infrastructure, in health, education, trains, ports, transport, industrial zones, new technology parks and others, interconnected with community-funded private investments in a multitude of productive sectors, from energy and modern technological goods, to food and tourism.

According to the plan, the network of combined public and private investments, developing in the three years 2025 – 2027, will form an environment of creation, development and opportunities, within which there will be scope for increasing wages, improving incomes, reducing unemployment and regenerating areas that were steadily deteriorating in the last two decades.

Opening barrage

Apparently, Mr. and Mrs. Mitsotakis and Hatzidakis are holding back for later. They will exhaust all the margins of development prospects and then from the autumn of 2026, entering the 2027 election, they will attempt any major changes in economic policy, simultaneously indulging in a barrage of inaugurations, which are supposed to confirm progress and the achievement of the “second convergence” invented by Akis Schertsos and adopted without a second thought by Mr. Mitsotakis.

The first, as is known, in the years of his second term Kostas Simitiswas drowned in scandals and later in the unreliability of his new democratic successors who, despite the promises, left the country unprotected and completely exposed to the threat of bankruptcy that developed after the international financial crisis of 2008.

Resource utilization

Now Mr. Mitsotakis shows that he wants to follow a safer path, maintaining, as far as possible, fiscal discipline and putting all the weight on the creation of new wealth through the exploitation of the multitude of resources. The interesting thing is that the same model, the same logic, is also followed by the banks, which take advantage of the difference in interest rates, take care of their viability and profits, finance the safest investment projects and avoid like the devil the financing of small and medium enterprises.

Greek society

It is characteristic that even the development of housing credit, once profitable for them, depends on government initiatives and facilities and on the incentives that the state will offer to new families to acquire housing.

In general, neither the Ministry of Finance, nor the banking system take the risk they are responsible for, rather they act with only the safety of their organizations in mind. But with the difference that Greek society is in a process of long tolerance and waiting.

At some point it will explode and put everything in jeopardy, as the steady alienation of citizens from all parties, including the ruling party, indicates. This is a parameter that apparently neither Mr. Mitsotakis nor the prominent bankers assess with due care…

#threeyear #plan #Marshall #Plan #government #preparing

September 4, 2024 0 comments

World

Climate change, energy transition and water scarcity are the new challenges for the government – 2024-08-07 19:42:53

by Chief editor of world-today-news.com August 7, 2024

written by Chief editor of world-today-news.com

The government is currently trying to rid itself of its great sins, of the demons of wiretapping that continue to haunt it, despite the filing by the judicial authorities of the absolutely unconstitutional action of its officials in the Ministry of Internal Affairs. And to transfer its interest to the privileged, according to the Prime Minister, zone of the economy, for the performance of which it boasts almost self-admiringly.

As from time to time he propagates, after passion, the Minister of Finance, who is also monitored by the EYP, Mr. K. Hatzidakisthe Greek economy is growing faster than the European average, the country is developing into an international investment destination, inflation is on the way to control despite jumping back to 3% and even though average wages are growing faster than this, unemployment is falling, falling last June at 9.6%, at levels lower than 2009!

According to the finance minister “everything is going well, public finances are robust, public debt under control, the Recovery Fund is a strong basis for boosting investments, the private sector is strengthening and economic policy is overperforming”allowing him to declare, in view of the programming of the International Exhibition of Thessaloniki, that he is not going to change, but will insist, perhaps with some minor corrections, on this mix and shape.

However, it hides the serious challenges it faces, the additional burdens, the new demands and in particular the commitment of significant resources formed by the quadrilateral of climate change, the energy transition, the upcoming water crisis and the consequent food production that already have a multiple impact on production , in the prices of goods and by extension in the lives of citizens.

Climate and energy

There is no longer any doubt that the climate phenomenon is constantly giving and will continue to give catastrophic events and events. This year’s extremely hot and dry summer, in addition to the extensive country-wide water shortage, which torments producers, tourist entrepreneurs and citizens, caused a multitude of fires, tied up unprecedented resources and forces and fortunately at the moment did not have dire consequences, corresponding to the recent of the past, but had a dramatic effect on the shallow, imperfectly organized and insufficiently interconnected electricity market.

The explosion of electricity prices and the hasty temporary regulation to relieve consumers exposed the problem and demonstrated the need for wider regulation, with “cutters” and “barriers” to uncontrolled price formation. The interconnectedness of the climate phenomenon with the energy transition requires new policies and much more investment capable of bringing a new balance, which will not hurt and cause uncontrolled price explosions every now and then. The government after the July fiasco is already facing the wrath of both domestic consumers and industry which sees the excessive cost of electricity adding burdens and undermining any efforts to strengthen competitiveness.

If the current heteronormative relationship is maintained, the double objective of dealing with the climate phenomenon and the energy transition will be undermined and the result will be absolutely disastrous for the Greek economy. In general, the government cannot stand politically, nor the country financially, the defense of the absolutely liberal doctrine in an imperfectly organized energy market.

The water crisis

But it is not the only complication of the current period. The water sufficiency crisis is already here. All over the country, local authorities are making calls to limit water consumption. From Crete and Laconia to Thessaly and the Macedonian plains, water is becoming increasingly scarce. In combination with the rise in temperatures affecting production, fruitlessness and microfruitfulness have shaken the production of cereals this year, as well as tree crops.

In Crete, the Authorities called on the producers to avoid the summer production of tomatoes, cucumbers and pumpkins and to focus on the autumn production of the greenhouses, in the hope that it will rain in between and the dams will recover at least part of the lost water reserves. The danger of the desertification of many areas of insular and mainland Greece is now becoming visible and will require concerted efforts in the future.

The water crisis is now taking on large dimensions and everything indicates that infinite resources and significant investments will be needed in order to deal with the subsequent, existential crisis of food production.

The food

In the wider scientific community, domestic and international, there is a common belief that the world will soon be faced with a food crisis of unique dimensions. The population explosion in Africa, India and elsewhere combined with the impending desertification of large areas, the water crisis, the limitation of productive land and the slow improvement of agricultural production techniques, are multiplying the world’s needs for food, highlighting their production in first priority project. It is indicative of the fact that the Malthusian theories that want the Earth unable to adequately feed its ever-growing population are coming back to the fore. Some scientists speak of a “food polycrisis”.

According to in.gr, the Cornell University professor Chris Barrett, which specializes in agricultural economics, argues that “the pattern of gradual decline in global hunger has now been reversed and malnutrition rates have increased by 21% since 2017.” He recorded that inflation-adjusted wholesale food prices have increased by 50% since 1999. Between 2020 and 2023 the wholesale price of olive oil tripled and that of cocoa quadrupled in less than two years. Economists now recommend that governments hold strategic food reserves, on par with oil, to shield themselves from international food crises.

According to the World Resources Institute we will need to add two Indies of arable land to meet the world’s food needs in the second half of the 21st century

According to him, today more than a third of the Earth is used for food production and almost 70% of fresh water for agricultural irrigation. The Latin American equivalent is used for agricultural production and the African equivalent for livestock grazing. According to the World Resources Institute, we will need to add two Indies of arable land to meet the planet’s food needs in the second half of the 21st century. Which means deforestation, more carbon dioxide emissions and of course, agricultural land cannot be offered for the rapid “planting” of photovoltaics, as is often the case in the Greek plains and the Greek plateaus. Somewhere, that is, the goals tend to become contradictory.

Be that as it may, new challenges come to the fore with great speed and call for a redefinition of national priorities and above all inspired, combined and visionary policies. The quadrilateral of climate, energy, water and food is here and will require other solutionsfar exceeding the self-aggrandizing government…

#Climate #change #energy #transition #water #scarcity #challenges #government

August 7, 2024 0 comments

Business

Three adjustments to presumptions – A breather for freelancers – 2024-07-21 12:45:41

by Chief editor of world-today-news.com July 21, 2024

written by Chief editor of world-today-news.com

The Ministry of Finance is getting ready a triple reduction for professionals and self-employed people who find themselves caught within the pinch of the minimal assumed earnings, sustaining, on the one hand, the fundamental philosophy of the measure, because the Prime Minister himself had acknowledged Kyriakos Mitsotakis just a few days after the European elections, and eradicating then again, with the purpose adjustments which are going to be made, from the framework of the presumptions hundreds who’re at present burdened with further taxes when they need to not.

In line with unique data of “Sunday Step”, the federal government’s monetary workers is ready for the completion of the submission of this yr’s tax returns in an effort to then course of all of the proposals on the desk and make the ultimate choices on the scope of the changes-corrections which are going to occur.

Nevertheless, some key adjustments appear to have already been locked in as a result of, as they rightly state, “are based mostly on widespread sense.”

The proposals for adjustments

There are three principal proposals for adjustments that, based on “To Vima tis Kyriaki”, the federal government goes to undertake in an effort to restrict the reactions it receives from the professionals and which had been not too long ago transferred to the poll field of the European elections with the numerous lack of votes recorded by the New Democracy.

1. The primary is to “freeze” the will increase which are predicted to happen within the minimal presumptive earnings because of an adjustment of the minimal wage. Basically, the rise within the minimal wage that can occur this yr and within the following years to succeed in 950 euros – which is a authorities dedication – shouldn’t be transferred to the minimal presumptive earnings. It is a complete improve of 14.5%.

The minimal earnings of 10,920 euros, which is utilized to the incomes of 2023, has been derived from the quantity of the minimal wage that was in drive final yr, i.e. 780 euros, multiplied by 14 wages acquired by employees within the personal sector.

If the rise for this yr’s earnings will not be “frozen”, then for 2024 the minimal presumptive earnings will rise to 11,620 euros, i.e. the extra tax that shall be paid by those that declare internet income under this quantity is 154 euros, whereas till 2027 , which can full the rise of the minimal wage to 950 euros, the minimal assumed earnings will rise to 13,500 euros and the extra tax burden by 523 euros.

2. The second crucial intervention is for the willpower of the minimal presumptive earnings to bear in mind the household incomes of freelancers, which isn’t the case immediately.

For instance, within the case of a married couple, if one has e.g. annual incomes of 20,000 euros, whether or not they come from salaried work or from a contract career, and the opposite partner, as a substitute of exhibiting a minimal earnings of 10,920, exhibits 5,000 euros, that one partner can primarily cowl the distinction of the decrease earnings from his personal.

That’s, to by some means work the system that’s utilized immediately to cowl the presumptions of dwelling, the place one partner can personal a automobile however it seems that the opposite partner maintains it. Nevertheless, if one partner’s earnings covers different dwelling bills (homes, automobiles, yachts, and many others.) and isn’t sufficient to soak up the distinction within the different partner’s minimal earnings, then it’s probably the opposite partner’s presumptive minimal earnings that it’s skilled to not be coated and incur further tax.

3. The third decisive intervention is to not embody solely the earnings he could have from salaried companies, from pensions and even from agricultural actions, however to bear in mind to cowl the minimal earnings and the earnings from rents, from curiosity on deposits, capital positive factors from shares, bonds, and many others.

The Minister of Nationwide Economic system and Finance Kostis Hatzidakis, two days after the elections, about the potential for adjustments within the taxation of self-employed individuals, he had acknowledged, amongst different issues, that “taxation will not be one thing static, there isn’t any system that shall be legitimate for many years. Issues are evolving, initiatives for digital transactions are shifting ahead and this method is not going to final ceaselessly.”

It appears, due to this fact, that the earnings earned by freelancers this yr shall be taxed in 2025, after they submit their tax returns, the place they are going to be taxed with a minimal presumptive earnings however will be capable to cowl it way more simply in comparison with ,what applies to 2023 incomes declared this yr.

Nevertheless, already within the workplace of the brand new Deputy Minister of Finance Christos Dimas in Karageorgi, Serbia, many requests-proposals for adjustments arrive every day from professionals in addition to competent our bodies in order that the brand new system turns into fairer for many who declare their actual incomes, however on the identical time doesn’t go away room for tax evaders to flee the pinch of the Tax Workplace on the expense of of the remainder, many in quantity.

Nevertheless, it’s price emphasizing that within the coming months the Ministry of Finance is ready for the choice of the Council of Ministers, which will even play a decisive position in any choices.

What applies

The minimal wage

The quantity of the minimal earnings is elevated relying on the years {of professional} exercise, the whole payroll and the quantity of the turnover of the enterprise with a most quantity of fifty,000 euros, whereas exemptions, reductions and likewise exemptions from the brand new technique of taxation are foreseen for particular classes of execs.

Particularly, the annual minimal wage for professionals for the primary 3 years of exercise is zero, however for the 4th yr of labor it’s set at 3,603 euros (tax 324 euros), for the fifth yr of labor at 7,316 euros (tax 658 euros), for the sixth yr of labor at 10,920 euros (tax 1,102 euros), from 7 to 9 years of labor at 12,012 euros (tax 1,342 euros), 10 to 12 years of labor at 13,104 euros (tax 1,582 euros) and for greater than 12 years of labor at 14,196 euros (tax 1,823 euro).

Moreover, a 5% surcharge is utilized to the minimal payment, calculated on the distinction of the very best turnover declared by the skilled in comparison with the common for the registered CPA.

#presumptions #breather #freelancers

July 21, 2024 0 comments

0 Facebook Twitter Pinterest Email

Business

Stamp responsibility is abolished on 600 transactions – 2024-07-03 23:30:48

by Chief editor of world-today-news.com July 3, 2024

written by Chief editor of world-today-news.com

The abolition of the Paper Stamp Charge for over 600 transactions and its substitute by the Digital Transaction Charge for all transactions that can live on, introduced the Minister of Nationwide Financial system and Finance Kostis Hatzidakis.

This reform issues the modernization and simplification of a legislative framework that has been in impact since 1931, its full digitization and its abolition -where necessary-, whereas it’s a dedication of the nation and a milestone within the Restoration and Resilience Plan. Continual problems with ambiguity are additionally addressed.

In additional element, the draft legislation, which is predicted to be instantly submitted to public session, promotes seven modifications:

the Stamp Charge is abolished and changed with the Digital Transaction Charge,

greater than 600 circumstances of imposition of the Stamp Obligation are definitively abolished,

The transactions on which the Digital Transaction Charge will likely be imposed are explicitly talked about, the declaration, calculation, certification and assortment of which will likely be accomplished completely digitally via a particular platform of AADE,

its imposition on transactions falling inside the scope of software of different oblique taxes is expressly excluded,

it’s outlined that the Charge is imposed on transactions, the place at the least one transaction celebration is a tax resident of Greece or has a everlasting institution in Greece, whatever the sort and placement of the transaction,

it’s clarified who’s liable to pay the tax,

a single time of fee of the Charge is set.

The issues of the present framework

The present framework for Stamp Obligation is to a big extent advanced and infrequently creates software difficulties for merchants. A number of the issues of the present framework are the next:

The Stamp Obligation is imposed on contracts drawn up in Greece, with the consequence that its fee may be averted by merchants who merely draw up the corresponding contract overseas.

Additionally, the present framework doesn’t explicitly point out the kinds of contracts on which it’s imposed, however typically covers these contracts that aren’t topic to different types of oblique taxation, with the consequence that there isn’t a authorized certainty in relation as to whether or not a contract is topic to Stamp Obligation.

The authorized uncertainty can also be exacerbated by the anomaly concerning who’s chargeable for the fee of the Stamp Obligation and the way the declaration and fee is made.

What modifications with the brand new framework?

Any more, the brand new Digital Transaction Charge will likely be imposed on transactions, whatever the place of their completion, so long as at the least one contracting celebration has a tax residence or everlasting institution in Greece and there’s no cause for exemption for the contracting events. These transactions:

are expressly named within the legislation,

are usually not topic to different oblique taxes.

Abolition of Stamp Obligation

It’s famous that with the proposed provisions, the Stamp Obligation is abolished in additional than 600 circumstances of transactions:

In additional element, the Stamp Obligation is abolished in a lot of essential transactions akin to: utility mortgage, insurance coverage transactions, institution and capital improve of non-profit authorized individuals/entities, assured financial institution credit in favor of importers, contractual curiosity on loans and credit.

Moreover, it’s abolished in additional than 100 transactions involving stamps on receipts (eg marriage license, skilled licenses, and many others.). Necessary be aware: The abolition of the Stamp Obligation doesn’t entail the abolition of the tax for the transactions in query. Nevertheless, it results in a discount within the remaining burden.

It’s also abolished in additional than 500 transactions wherein a Stamp Charge of two.4% or 3.6% was imposed on reservations regarding NPDD or the State (e.g. Stamp on Reservations in favor of the Nationwide Medicines Group (EOF), in favor of TACHDIK ( Courtroom Constructing Financing Fund), in favor of EADISY (Impartial Public Procurement Authority) Ms.

Declaration and return of Digital Transaction Charge

The Transaction Charge for transactions between non-public people will likely be verified with an digital declaration via a brand new digital platform that will likely be put into operation by AADE. The declaration and return of the Charge is made by the tip of the next month from that of the transaction.

Excluded are the circumstances the place there’s an obligation to withhold revenue tax (its certification and fee relies on the withholding tax deadlines), rents (its fee is made via the submission of the Revenue Tax Declaration) and the case of a present account (the declaration and the return is made inside the first month of the next tax yr).

For transactions with the State, the Transaction Charge is paid electronically earlier than the related act is drawn up or issued.
Digital Transaction Charge Components

It’s famous that the coefficients of the Digital Transaction Charge for transactions between people are clarified and outlined as follows:

3.60% on all actual property rents, on invoices for the gathering of compensation for authorized curiosity and late fee curiosity and on transactions or contracts between pure individuals who don’t perform a enterprise exercise and individuals who perform a enterprise exercise and are contracted for acts not associated to it in addition to within the circumstances the place one contracting celebration is the State, Municipality, NPDD.

2.40% so long as all of the contracting events or transactors perform enterprise exercise, or at the least one has the authorized type of SA, EPE and IKE.

1.20% whether it is for fee of charges to pure individuals or members of administration and for deposits or withdrawals from the funds of authorized individuals and entities.

0.30% on checks offered (“plates”) to credit score establishments.

Digital Transaction Charge for loans, deposits and withdrawals

Loans topic to a Transaction Charge (loans between people/corporations which aren’t banks) are topic to a most Transaction Charge of 150,000 euros per mortgage contract, no matter the place the mortgage was taken out. On this method, the explanations for circumventing the laws will now not exist. Thus, the federal government will accumulate the charges that till now it misplaced because the related contracts have been concluded overseas. The burden on corporations and people will likely be at cheap ranges.

In additional element, they’re topic to a Transaction Charge:

with a charge of three.6% for loans between people,

with a charge of two.4% for loans between pure or authorized individuals who each perform enterprise exercise or the place at the least one contracting celebration is a SA, EPE or IKE,

with a charge of 1.2% the entries within the books of authorized entities concerning deposits and withdrawals.

with a charge of two.4% the bond loans of Legislation 4548/2018 except they’re traded on a regulated market or multilateral buying and selling mechanism.

It’s famous that contractual curiosity on loans is excluded from the Charge.

The statements

The Minister of Nationwide Financial system and Finance, Kostis Hatzidakis, acknowledged: “With the proposed draft legislation, we try one other reform of residents’ every day lives, in addition to modernizing the operation of the Public Administration. We’re leaving prior to now, the place it belongs, the outdated present framework for the Stamp Obligation that dates again to 1931. And we’re harnessing new applied sciences to handle decades-old pathologies which have prompted confusion for residents and ambiguity within the software of tax legislation. We’re persevering with the trouble for the general modernization of our tax system whereas, on the identical time, abolishing the duty to pay this Charge for over 600 transactions that positively have an effect on the pockets of residents and companies.”

The Deputy Minister of Nationwide Financial system and Finance Christos Dimas famous: “It’s a measure geared toward liberating residents, professionals, companies and the State from bureaucratic procedures that burdened them till at this time. The aim of the regulation is to modernize the legislative framework for the imposition of tax on transactions, to simplify and digitize the method, to rationalize the premise for imposing the tax on transactions, in addition to to scale back administrative burdens.

The Governor of the Impartial Inland Income Authority, George Pitsilis, mentioned: “The substitute of the antiquated nineteenth century Stamp Obligation with a contemporary Transaction Charge, which applies to particular transactions, identified upfront to taxpayers, and is delivered digitally, is doubly helpful for taxpayers. residents and companies. It gives authorized certainty, eliminating causes that prompted friction with the Tax Administration and appeals to the courts, and on the identical time saves taxpayers from inconvenience, as it’s paid merely and rapidly, with a digital course of. The brand new Transaction Charge is a vital step in modernizing our tax system.”

Supply: ot.gr

#Stamp #responsibility #abolished #transactions

July 3, 2024 0 comments

0 Facebook Twitter Pinterest Email

Newer Posts

Older Posts