Greek Gov’t in Tax Frenzy: Up to 45% Tax for Redundancy & Lump Sum Compensations

Greek government will impose heavy taxes to whatever moves, flies, swim or stands. Compensations will undergo sharp cuts as the state’s arm will dig deep into the pockets of unemployed and grab its share. And all this despite, the promises of Prime Minister Antonis Samaras that they would be no new taxes – but that was before the June elections.

Lump sum conpensations will be taxed from the very first euro: 10% for the first € 12,000,  30% for the next 48,000 euros and 45% of the amount above 60,000 euros. the lump sum compensation comes from from workers’ contribution, even though workers at public administration normally receive much higher sums than employees have paid.

Until now, lump sums were tax free until 60,000 euro, 60,001-100,000 euro 10%, 100,001-150,000 euro 20% and over 150,001 30%.

Redundancy payments. Tax-free limit is set at 50,000 euro. Taxation scheme will be: 10% for the first  € 12,000, 30% for the next  €48,000 euros (that is compensation total sum of 60,000 euros) and 45% for amounts over  € 60,000. You think, redundancy payments are thought to aid the jobless? That was… last year!

0-50,000: 0%

50,001- 62,000 : 10%

62,001-110,000: 30%

Over 110,001 : 45%

Income from Rent: a separate tax will be imposed to incomes from rent regardless of  whether the property owner has other income or not.

0-12,000 euro: 10%

12,001-60,000 euro: 30%

Over 60,001: 45%

Free-Lancers will be taxed like self-employed and thus with 26% from the very first euro and up to 50,000 euro and with 45% for annual income of over 50,001 euro.

 tax source: zougla.gr