Tuesday , August 22 2017
Home / News / Economy / Out of control: Greece to tax annual income of €26,000 with 45%!

Out of control: Greece to tax annual income of €26,000 with 45%!

 The new taxation system the Greek finance ministry is preparing  under the Troika dictations, is getting more and more out of control with the technocrats apparently having lost any sense for social justice. According to the latest version given to the press, annual incomes of more than 26,000 euro will be taxed with 45 percent, while the tax-free amount – currently at 5,000 euro – will be scrapped. And thus not only for self-employed but also for employees and pensioners.

The latest suggestion prepared by the Finance Ministry foresees:

New three tax scale for employees and pensioners:

* tax rate 21% from the first euro up to € 18,000  (original plan up to € 25,000)

* tax rate 26% for incomes 18,000 to 26,000 euro ( according to some other sources: tax rate 36%; original plan was 36% for 25,001 to 48,000 euro)

* tax rate 45% for incomes of 26,001 euro (original plan for over € 45,000)

The tax-free amount of € 5,000 will be scrapped and be replaced by a tax-decrease of  € 1,950 for all taxpayers regardless of income level and marital status.

The new law also sees a shift in taxation for the self-employed, as they will get taxed from the first euro of their net income with a 26 percent rate up to 50,000 euros per year and with a 33 percent rate for any income that exceeds 50,000 euros. Small enterprises will be taxed by the same rates, but their tax deposit will increase from 55 percent to 80 percent.

Rental revenues will be taxed with a 10 percent rate up to 12,000 euros per year and with a 33 percent rate for any revenues in excess of 12,000 euros.

Examples

 Employee, 3 children annual income 17,500 euro (1,250 e/m): before 995 income tax – after 1,725 euro

Self-employed annual income 16,000 euro: before 820 euro – after 3,360 euro

Lawyer, annual income  600,000 euro: before 257,420 euro – after 194,500 euro

The draft has to be finalized until upcoming Wednesday. Major issue of dispute among coalition government partners is the scrapping of tax-free amounts for children. (several sources/Greek media)

PS What do they drink?

Check Also

Athens seeks Protected Destination of Origin for ‘Greek yoghurt’ in EU

The Greek ministry of Agriculture will push for a geographical protection for “Greek yogurt” considering …

14 comments

  1. “* tax rate 45% for incomes of 26,001 euro (original plan for over € 45,000)”

    >> This is as bad as weapons of mass destruction; it’s just a bit clever. By heavily taxing people this way, the facist government effectively are cornering people into dead-end. And when the people can’t take it any more, they commit suicide. and the facist government can confisticate their properties and belongings. Mission accomplished!

    These are draculas manifested as government officials. They drink their own people blood.

  2. The way I read it is only 15% of total income in tax on 26,001 annual income. ie 21% of 1st 18,000 (3780), plus 26% next 8,000 (2080), plus 45% of 1 euro (45 cents), less 1950 = 3,910.45. The 1950 tax decrease is equivalent to 9285 p.a. tax free – nearly double the old tax free amount. IF you are lucky enough to earn more than 26,000 in Greece then the 45% is ONLY on the part above 26k. What is your problem when the country needs money in order to survive?

  3. keeptalkinggreece

    you mean I am not ‘the country’? My problem is they heavily tax low and middle incomes while they fail to combat big scale tax evasion or tax the rich. Furthermore, they scrap the tax-free amount currently at 5,000 euro annual income meaning they tax the poor with 416 euro per month. According to EU, living on less than 6,000 euro/year is poor.
    and even furthermore, this tax scale do not include the emergercy taxes like ‘solidarity, emergency property tax, trade fee’. They also scrap the majority of tax-reductions for household expenses.

  4. …and don’t forget sales tax (VAT) of 13% on food and 23% on everything else you have to buy……….

  5. The middle class should not whine about this but show some national solidarity in order to keep the high incomes of people like members of parliament, business or ship owners tax-free. Without their elite being spared the burden of tax Greece would be buggered.

  6. keeptalkinggreece

    you are fully correct and I regret for the total absence of solidarity with the people you mention above. How could I not have pity?

  7. Thank you for your understanding. I think the finance ministry shold follow an even more stringent approch: everybody earning less then € 26,000 should be enslaved. Then the tax rate could be risen to 100%. Incomes between 26,000 and 50,000 should be taxed twith a moderate 75%. Incomes above 50,000 (declared or undeclared) should be tax-free, as already implemented today. The only remaining problem would be that that some expences on slaves (basic food, basic lodging, disposal of dead slaves etc.) seem to be unavoidable.

  8. keeptalkinggreece

    they maybe offer tax-free deductions for those keeping the slaves.

  9. That sounds like a good idea but doesn’t solve the problem for slave-holders that don’t pay taxes anyway. They would be left out in the rain with all these unbearable costs. Maybe they should be granted government subsidies, like € 10,000 / month per slave. This would encourage slaveholding and thus foster prosperity.

  10. keeptalkinggreece

    10,000E/m is much to much. 500 E/m would do perfectly. then they will boost competitiveness by creating new jobs leading the country into the frenzy-speed moving train of development and growth. Amen!

  11. You say in your article above “The tax-free amount of € 5,000 will be scrapped and be replaced by a tax-decrease of € 1,950 for all taxpayers regardless of income level and marital status.” if you said this correctly ANYONE EARNING LESS THAN €9285 in a year would NOT pay tax as 21% of €9285 is €1950 – the ‘tax-decrease’ amount deducted from all tax bills – unless your statement is incorrect. Anyone on less than about 774 per month therefore pays no tax.
    Someone lucky enough to earn €26,001 in Greece(as above) would still have €22,091 a year after tax, about €1,841 pm – of course they should pay income tax. The €3,912 taxes will go to ensure there is money to pay pensioners. I find it criminal that some pensioners only get 350 a month …. but unless the richer citizens pay taxes, then they will have nothing to give them. Of course there are MUCH richer citizens who should declare their incomes and pay more taxes too.With the new proposal the 45% tax on earning over 26k will hit the richest most (assuming income is declared!), not low & middle incomes.
    We have never had tax reductions for household expenses in UK – you are lucky to have got away with it for so long. We also pay much higher council tax (like your property tax and ‘dimarkeo’ tax) & TV licence is twice as much whether we watch BBC or not.

  12. Mmh. With € 500/month the profit margin may be not totally convincing for investors. I mean, a slave could cost you easily up to € 100 a month! Don’t endanger investment and job creation!

  13. keeptalkinggreece

    100 euro per month would mean one spends 3.3333333333333333 per day. much too much for food and water

  14. keeptalkinggreece

    i think i dela with a tax officer here. I give up.