Greece’s Finance Minister announced on Tuesday a few changes regarding taxation. Among others the Ministry found a solution to a court decision on taxing tips customers give to delivery and catering workers. In addition, he revealed that the annual entrepreneurship fee for freelancers will be abolished and discounts will be given in the payment of tax returns.
TIPS
Tax-free amount of 300 euros per month for each worker who receives tips via POS. This amount will also be exempted from social security contributions.
Tips amount over this allowance will be taxed on the basis of the income tax brackets and no social insurance contributions will be paid.
The Ministry decision comes after strong protests by workers who usually receive tips as well as of members of society.
A Poll among KTG readers had shown that the overwhelming majority was clearly against taxing tips.
Beginning of the month the Supreme Court had ruled that tips to delivery workers are “salary” and have to be taxed accordingly, including social security contributions. “Tips” would be considered as additional income and would be taxed as salary.
Freelancers
The entrepreneurship of 500 to 600 euros annually for freelancers will be abolished as of 2025.
Tax returns
Tax returns will be submitted every year from 15 March until 15 July.
A graduated discount of 4% to 2% is introduced, depending on the time when a tax return is submitted, and only if the tax to the state is paid the whole amount at once.
Any idea how the “graduated discount” actually works? I would be happy to submit my return early and pay in full immediately for a 4% discount. What is the deadline for that maximum discount to apply?
ask your accountant