"Electronic receipts": tax credits, deductions and “double” rate

Even greater benefits and deductions, as an incentive to reduce tax evasion, are proposed by the Ministry of Finance this year in order to induce taxpayers to provide “checks” from electronic payments received as a result of payments for certain categories and areas of services.

The list of professions and services is expanding, and includes several “suspicious” in tax evasion. In an effort to reduce the number of “out-of-system” transactions (cash payments without checks), the Ministry of Finance provides taxpayers who prefer to carry out them electronically an additional tax deduction of between 450 and 2,200 euros.

The list includes workers who provide services, for example, maintenance of air conditioners or carrying out various repairs, etc.

The goal of the Greek government is that 30% of the expenses incurred by taxpayers, with the provision of electronic payment receipts in certain professional sectors and up to 5,000 euros per year, are deducted from taxable income.

The list already exists, however, the Ministry of Finance has determined that there are certain professions in which tax evasion continues. New professional categories that will be added in 2022 are plumbers, electricians, painters, lawyers, architects, refrigerators (repair and maintenance of air conditioners).

The following are private entrepreneurs and companies providing services such as:

funeral parlors, personal hygiene and body care (massage, etc.), cleaning and maintenance, childcare (babysitting), taxis, laundries, yacht rental services, consulting services, filming, photography, construction work, gyms , dance schools.

The tax deduction will amount to 2200 euros, depending on the total annual income and transactions made during the year. For example, the maximum tax reduction for a taxpayer with an annual income of 10,000 euros is 450 euros.

With an annual income of 10,000 to 20,000 euros, the tax deduction will be 1,100 euros, from 20,000 euros to 30,000 euros -1,400 euros, from 30,000 euros to 40,000 euros, the deduction will be 1,800 euros and a ceiling of 2,200 euros if the annual income exceeds 40,000 euros.

This means that a taxpayer with an annual income of EUR 15,000 who has made a total of EUR 2,000 in electronic transactions, using the services of the above professionals, deducts 30% of his expenses. That is, out of 2,000 euros that he paid electronically, 600 euros will be deducted from his taxable income. This means that the total amount to be taxed is 14,400 euros.

Accordingly, if a taxpayer with an annual taxable income of € 20,000 paid an electronic payment of € 8,000 to specific professionals, 30% of the expenses would be deducted from taxable income. Thus, instead of 20,000 euros, 17,600 will be taxed, since 2,400 euros will be deducted from his taxable income. The tax that he will pay will be 2,572 euros, and without deduction he will pay 3,100 euros, i.e. the profit will be 528 euros.

At the same time, with the new provisions, the annual expenses of each individual for visits to doctors, dentists, veterinarians, as well as for examinations in private diagnostic centers will be “measured” in double size and will cover 30% of the annual real income (except for the purchase of drugs and hospitalization).

For example, a fee of € 100 for a medical examination, if paid by credit or debit card, would be considered an expense of € 200.

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