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From the printed version
By Thanos Tsiros
[email protected]
Hundreds of thousands of taxpayers who have earned income from businesses, rentals, dividends, interest and royalties or even “capital gains from capital transfers” will have to pay less taxes in 2021.
These incomes, if acquired in 2020, are retroactively exempted from the solidarity contribution, which in practice means a reduction in their tax rate even by 10 percentage points. However, fewer reservations will be made starting in the new year for private sector employees.
For them, there will be no solidarity contribution to the income from paid services that will be acquired in 2021.
But since the solidarity tax is withheld, the benefit will be seen in the January payroll. Taxpayers who may have income from more sources (for example, from salary in the private sector, but also income from rent) will earn multiple gains as the reduction in burden will be reflected in both the 2021 invoice and the annual payroll new. but also in the liquidation of 2022.
The abolition of the solidarity contribution does not only affect income from state salaries and pensions. However, if public employees and retirees also have income from a second source (for example, rent), they will also have a benefit that will be reflected in the 2021 statement.
The details for the application of the measure of “freezing” of the solidarity contribution are described by means of a decision of the Independent Public Revenue Authority. It is clarified that the remuneration of the Board of Directors will not be exempt from the solidarity contribution in 2020 since they are taxed as income for paid services (so they will be exempt from the contribution in 2021). Also, if someone falls into the test trap, to get rid of the solidarity contribution, they should not have been taxed on the basis of the test from the previous two years.
The 10 points of the decision of the Independent Public Revenue Authority are as follows:
1 With article 298 of law 4738/2020, paragraphs 49 and 50 were added to article 72 of law 4172/2013 (KFE). With these provisions, especially for fiscal year 2020, the income provided for in this article is exempt from the special solidarity contribution of article 43A of the CCA, with the exception of income from salaried work and pensions. For fiscal year 2021, only the income obtained from paid work in the private sector are exempt from the special solidarity contribution of article 43A KFE. If the income is determined in accordance with article 34 CFA, the exemption from the special solidarity contribution is granted for fiscal years 2020 and 2021 if for the two previous fiscal years, if applicable, the alternative method of calculation of the minimum tax of in accordance with Articles 30, 31, 32, 33 and 34 CAC.
2 During fiscal year 2020, no special solidarity contribution of article 43A CFA is imposed on the income of the following categories:
* of business”,
* of “capital” (dividends, interest, rights and real estate), as well as “goodwill for capital transfer”.
3 The income of the previous categories includes those for which the taxpayer acquired the right to collection in fiscal year 2020, in accordance with the provisions of section 4 of article 8 of the CCA and circular POL.1223 / 2015, which gave instructions for the correct and uniform application of these provisions.
4 According to the circular POL 1223/2015, the special solidarity contribution of article 43A of the CFA is not imposed on the income from dividends (which includes dividends on account, as well as the temporary extraction of benefits) when the decision to approve its distribution by the competent body of the legal person or legal person took place in fiscal year 2020. Regarding the distribution of extraordinary reserves SA. and Ltd., as well as personal business profit distribution, etc. Those who keep duplicate books, regarding the time of acquisition and taxation of these incomes, the provisions of the previous circular will be applied in the same way. It is also pointed out that the moment of acquisition of the right to collect the distributed profits (dividends) of the legal entities that keep books by the haplographic method is considered the closing date of the management. In any case, that is, crucial for the exemption of the special solidarity contribution for fiscal year 2020 is the moment of acquisition of the right to collect dividends and not the moment in which the profits for the legal person or legal person, or the time of payment. from them.
5 For fiscal year 2020, all types of income from “paid work and pensions” in the sense of the provisions of article 12 of the CFA have a special solidarity contribution, regardless of the form of their taxation (with the scale of article 15 or independently). Therefore, for fiscal year 2020, a special solidarity contribution is imposed on the remuneration of the directors. of circumstance d ‘of paragraph 2 of article 12 KFE, as well as in the income of circumstance f’ of paragraph 2 of article 12 KFE.
6 If the income for the year 2020 is determined in accordance with the assumptions b ‘and c’ of section 1 of article 34 of the CCA, the exemption of the special solidarity contribution is foreseen if the method was not applied for the two (2) previous years Alternative calculation. of the minimum tax, in accordance with articles 30, 31, 32, 33 and 34 CCA. Therefore, if in fiscal year 2020 there is an added difference of assumptions taxed as income from business activity, in order not to impose the special joint tax, for the two previous fiscal years (2018 and 2019) there should be no added assumption difference or this covered even by an expired amendment statement.
7 With respect to financial year 2021, the exemption from the special solidarity contribution will apply exclusively to the private sector for income derived from paid work, in the sense of the provisions of article 12 of the CCA. Likewise, no special solidarity contribution will be imposed on the remuneration of the directors. of circumstance d ‘of paragraph 2 of article 12, as well as in the income of circumstance f’ of paragraph 2 of article 12 of the CCA. Therefore, for these income from January 2021, a special solidarity contribution should not be withheld based on paragraph 6 of article 43A of the CFA.
8 On the contrary, any institution withholds a special solidarity contribution on all types of pensions. It is further clarified that the insurance paid within the framework of the collective insurance policies of the pension contracts (ca. g par. 3 of article 12 KFE), whether paid in a lump sum or in the form of a periodic benefit, is a Income from pension and not from paid work and as a result You are not exempt from the special solidarity rate for fiscal year 2020 or fiscal year 2021.
9 If in the year 2021 an additional difference of presumptions arises that is taxed as income from paid work (article 34 para. 1 para. A) for the beneficiaries of the exemption of the special solidarity tax, in order not to impose the special solidarity tax, they must be the two previous years (2019). and 2020) either there is no additional difference of presumptions or it has even been covered with an expired amendment statement. In this case, the exemption to the aggregate presumption difference is granted only if the taxpayer obtains income from paid employment in the private sector.
10 Private sector employees are only those who work in organizations outside the public services, decentralized administrations, first and second degree local authorities and their legal entities, legal entities of public law and legal entities of private law within the General Government (See also article 31 para. 1 Law 4756/2020 (A ‘235).
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