The two big changes – The first concerns about 1 million employees and pensioners – The second big change results from the change in the way of taxation for about 735,000 freelancers and self-employed
A maximum of 2 weeks separates us from the opening of its electronic portal AADE for the submission of this year’s tax returns, which last year exceeded 9 million.
The big changes are essentially 2. The first concerns about 1 million employees and pensioners who have no other income than their salaries and pensions respectively.
As last year, and as long as there is no change in their marital status, these taxpayers will see their tax return pre-filled. The big change is that even if they do not press the send button, either by negligence or out of “boredom”, – after checking that all the information is correct – their tax return will be automatically sent by AADE on the last day of the deadline.
The second big change stems from the change in the way of taxation for around 735,000 freelancers and self-employed people. From this year, the presumptive method of taxation applies to them and their minimum income is set at €11,630 – that is, the salary of someone who receives the minimum wage – and can reach up to €50,000 based on specific criteria.
Their tax declarations, the so-called E3, will for the first time also be pre-filled with the assumed income, which of course they can dispute and ask to be checked. New codes are added to E3 concerning:
-The years of operation of the business
-The total annual payroll costs (if there are staff)
-The total annual turnover of 2023
-Any exemption from the new taxation system (concerns large children or people with a disability of more than 80%)
-Any exemption from the new taxation system because it belongs to one of the categories of the military, hospitalized, sick or imprisoned
-Any reduction in the presumptive income (headquarters in a small village or small island, disability 67% to 79%)
– Disputing the certified tax and accepting an audit by the AADE
For freelancers and the self-employed, the registration fee will be reduced by 50% this year and zero next year, as announced by the Minister of Finance, Kostis Hatzidakis.
For the “blocks” it remains at €400-€500 as well as for legal entities (IKE, S.A., O.E., EPE, E.E) at €800-1000
From this year, the following will be fully exempt from the pretense fee:
-Professionals and businesses with a turnover of up to €2m that increased their staff by at least 25% compared to last year
-Commercial enterprises and self-employed persons who carry out their activity in villages with a population of up to 500 inhabitants and on islands with less than 100 inhabitants, unless they are tourist sites
-Individual businesses and freelancers who are in their first 5 years of operation
-Professionals with a disability of at least 80%
-Farmers and Fishermen
-Those who are 3 years away from the retirement age which is calculated at 65 years
In contrast, there is no change in advance tax:
-55% for freelancers and sole proprietorships
-80% for businesses
-100% for banks
For electronic expenses, it applies that they must cover 30% of the taxpayer’s income with a maximum limit of €20,000
Expenses from medical professions count for twice their value.
Failure to collect the electronic spending limit results in a tax penalty of 22% on the difference between the receipts that should have been collected and those that were finally collected.
Exempted from the obligation to collect electronic receipts:
-Those who have completed their 70th year of age
– Permanent residents in villages with a population of up to 500 inhabitants and islands with a population of up to 3,100 inhabitants
Especially the costs of renovating or repairing a home made by electronic means bring a tax deduction of up to €1600
Insurance contributions paid for the purchase of notional insurance time are deducted from taxable income
The presumptive method of taxation is also activated for any employee who finds himself unable to cover the presumptions of living with his declared income.
The resulting tax will have to be paid in 8 monthly installments from July to February 2025. The one-time payment of the tax brings a 3% discount, which discount also applies in the event that an extension is given to the start of tax repayment, which is not was valid last year.
Source: Skai
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