By Vangelis Dourakis

The submission of tax returns is running at a “crazy” pace, as the number of E1 forms that have been deposited with the tax office is now reaching 1 million “lucky” that those freelancers (doctors, lawyers, engineers), traders, travelers, traders, but also “taxpayers”. And this is because they are part of a privileged status with a tax rate that is only 4.5%.

The same taxpayer category even pays a 50%tax advance, and are exempt from the business fees. In order to benefit, of course, one of these discounts must meet specific conditions.

This year’s “lucky”

The “lucky” tax office for this year – and while the process of filing tax returns is already underway – are considered to be the young professionals who, for the first three years of their starting activity, are exempt from the new imputed taxation system.

They will be taxed on the basis of the income they will display in their tax return.

These traders are also favored by the reduction of the tax burden on new businesses during their early years, provided for tax law.

In detail, this category of professionals has benefits from:

  • The exemption for three years from the imputed manner of taxation adopted for the income of 2023 onwards.
  • Payment of half a tax advance, as for each newly established individual business from a merchant, or by a freelancer, the income tax rate is reduced from 55% to 27.5%, for the year in which income is earned for the first time. Since during 2024 the company first earned income (profit) from business, the tax advance, which will be confirmed, will be reduced by half.
  • From a reduction in half of the tax rate.

Who has a reduced income tax

Regarding the taxation of young entrepreneurs, the legislation provides for their taxation with 50% of the ratio of the first scale of the scale, which is at 9%.

So, according to the Income Tax Code for natural persons in the first three (3) years of exercising their activity, the tax rate of the first tax scale is reduced 50%, since their annual gross income from business does not exceed EUR 10,000.

Thus, the natural persons who have started a business from 2022 onwards, establishing new solo enterprises, will be taxed for the net profits of the tax year 2024 this year, with a tax rate of 4.5%.

Since half of the income tax applies for a three -year period, it is clarified that traders who initiated work in 2022 were taxed at half the import rate of the scale, for the profits of 2022, 2023 and 2024 and from 2025 the tax will be calculated.

Those who started in 2023 will be taxed at a 4.5% rate for tax years 2023, 2024 and 2025 and so on.

On the contrary, those who launched work in 2021 or in previous years have exhausted the three -year reduction of rates and will be taxed this year for the profits of 2024, with the full rate of 9%.