Freelancers and sole traders have risen up against the new imputed tax system announced by the government. Even before the new provisions are revealed in their final form, 13 scientific and professional bodies declared a pan-Hellenic abstinence on November 22 reacting to the news tax measures which as they say “they seriously affect freelancers, scientists and small and medium-sized businesses, since in the name of allegedly fighting tax evasion, horizontal and therefore unfair measures are promoted and the practice “better few than many, than many than few” is adopted”.
Professionals act determined to intensify their mobilizations but also to appeal against the objective criteria reinstated by the government as soon as the 2024 tax returns are issued.
The implementation of the new way taxation which will apply to the incomes of 2023 which will be taxed in 2024 has surprised the professionals and the self-employed, who within 1.5 months will have to adapt to the new data. And this is because the new tax regime does not set as a single “red line” that professionals and sole proprietorships do not show incomes lower than the annual earnings of an employee who is paid the minimum wage, i.e. 10,920 euros according to today’s data. If the professional carries out the activity for more than 6 years, the minimum assumed income will reach up to 14,196 euros. If he has an employee, the annual salary of the employee is the “ceiling” for the income of the professional – employer with a maximum limit of 30,000 euros. If its turnover is significantly higher than the average annual turnover of the sector of activity, then the presumed income will be increased by up to 100% and will reach up to 50,000 euros.
Based on these data, the minimum assumed income of the professional and the tax he will pay will be determined.
Refugees
The questioning of the tax that AADE will charge with the 2024 settlement can be disputed, as the method of calculation is contestable, but under certain special conditions.
According to the Ministry of Finance, the presumption of minimum wage can be challenged by the taxpayer if he can prove on the basis of facts that his earnings were less. However, the reasons for force majeure, recognized by the Ministry of Finance, are limited and specific, as they include those serving their military service, hospitalization, strikes caused by natural disasters, etc. The professionals are also reacting on this issue with the Deputy Minister of Finance Haris Theoharis stating that the expansion of the cases for which the presumed income can be disputed by the taxpayer is being considered.
Reductions
Based on the new system the minimum wage is reduced by 50% for freelancers with a disability equal to or greater than 80% and for those who exercise an activity and have their main residence in villages with a population of up to 500 inhabitants and on islands of less than 3,100 inhabitants.
also the minimum presumptive income is “cut” for freelancers with newly established business activity as for the first three years they are completely exempt from the minimum wage, for the fourth year the minimum wage will be reduced by 67% and for the 5th year by 33%.
Source: News Beast
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