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The uniform tax treatment of income from different sources, such as income, proposes the Pissaridis committee to the government.
In this case, the income from the rental of real estate, the goodwill of capital gains in stocks or bonds (in case they are sold before maturity) and dividends may be taxed at the basic rate of income tax (employees, retirees and self-employed). Today, rental income is taxed at rates of 15% to 45% depending on the amount of income, earnings from stocks and bonds are taxed independently at a rate of 15%, as are dividends at a rate of 5%.
Should the government adopt the proposal for uniform tax treatment without reducing tax rates, significant burdens will arise. For example: a taxpayer with an annual salary for paid work of 20,000, who also has an income of 10,000 euros from real estate will pay, based on what is in force today, the amount of 4,600 euros. For the 20,000 euros the tax amounts to 3,100 euros and for the income from the rental of real estate to 1,500 euros (10,000 x 15%). In the event that it is decided to tax these incomes in a uniform manner, with the scale of taxation of income from work, the tax will skyrocket to 5,900 euros, that is, you will be asked to pay 1,300 euros more.
However, for those with only real estate income, a flat income tax will be beneficial. For example, today someone who has real estate income of just 30,000 euros pays a tax of 8,100 euros. With its taxation with the single scale, the tax is limited to 5,900 euros.
In most cases, however, charges arise, while, on the contrary, only those who have exclusive real estate income make a profit.
Rate reduction
At the same time, the Pissaridis committee suggests to the government the reduction of tariffs after the first steps. It should be noted that the first tax step today refers to income of up to 10,000 euros, which is taxed at the 9% rate. From 10,000 euros the rates increase significantly with the next step (10,000-20,000) reaching 22%, the next step to 28% for incomes of 20,000 euros to 30,000 and for incomes over 40,000 euros it rises to 44%.
This proposal is combined with the abolition of the solidarity contribution, which, however, has been suspended for private sector employees for next year’s income.
In any case, the reduction of fees and the permanent abolition of the solidarity tax are expected to significantly stimulate the middle class of employees who were most affected by any other class of income in the years of the memoranda and continue to pay extremely high taxes even today. . It is indicative that after the changes in the legislation by ND for the so-called “average” incomes (from 16,000 to 17,000 to 50,000 euros) there is a minimum “symbolic” relief of 17 to 37 euros per year.
Electronic payments
The Committee also recommends increasing transparency in transactions with positively targeted incentives for the use of electronic payments. Before the pandemic, the government planned to award larger prizes in fewer lucky and weekly lotteries, rather than the current monthly ones, to stimulate taxpayer interest in business cards. At the same time, he was designing incentives for taxpayers to look for receipts from professional groups at the top of the list for tax evasion, as well as real estate lotteries. Another proposal that converges with the government’s pre-election commitments is the return of property taxes to municipalities.
