The new tax bill being presented by Minister of National Economy and Finance Kostis Hatzidakis and Deputy Ministers Christos Dimas and Thanos Petralias includes, among other things, the introduction of a tax-free tip limit, the elimination of the business tax for all individuals without exception starting in 2025, the establishment of fixed dates for the submission of tax returns, and a modern administrative model for the AADE.
A tax-free allowance of up to €300 per month is established for tips from POS, while the entire amount is exempt from social security contributions. What was in force until now was taxation from the first euro. Tips were declared in the detailed periodic declaration and taxed, just like wages. The measure will apply from 1 November 2024.
A regulation will also be introduced that will act as a disincentive for an employer who wants to reduce the employee's salary and replace it with tips. For instance, if an employee receives €850 and the employer says he will give him €650 and deduct the remaining €200 from tips, a tax provision will likely apply to this situation.
BUSINESS TAX
The abolition of the business tax will apply from 2025 for all individuals, including "block workers," who were left out of the abolition originally announced. This category includes natural persons whose income comes from a sole proprietorship or liberal profession and who have a written contract with up to 3 natural and/or legal persons, or 75% of their gross income comes from a natural and/or legal person.
TAX RETURNS
A clear and predetermined period for submission of tax returns for natural and legal persons is set, which will be 15 March to 15 July.
It also changes the one-time income tax payment deduction, which is currently 3%. Under the new arrangements, those who file tax returns by April 30 each year will get a one-time tax payment deduction of 4%. Those who file returns from May 1 to June 15 will have a 3% discount and those who file from June 16 to July 15 will have a 2% discount. The payment deadline to receive the rebate remains July 31.
NEW STRUCTURE FOR AADE
There will be a reallocation of responsibilities between the Governor and the Management Board. The Council deals with many day-to-day operational issues such as procurement, staffing, etc. All these are being passed on to the administration of the AADE. At the same time, the Council is given a more institutional role, taking over the control of the governor and deputy governors and the drafting of annual reports for the evaluation of their work to be sent to Parliament.
- The possibility of a 2nd renewal of the term of office of the Governor (currently the law provides for one renewal) with a discretionary decision by the Management Board
Possibility to recruit general managers also from the private sector, as has been done in the EFKA.
-Establishment of deputy directorships in the AADE. In particular, three sub-director posts will be created: one for the organisation of operations (COO), a sub-director for legal services and a sub-director for the digital transformation of the AADE.
Introducing the changes at the AADE, Hatzidakis said that the AADE Governor George Pitsilis has done an important job so far, noted that it is the responsibility of the Management Board to express an opinion on the work of the Governor, but stressed that the government and the Ministry of Finance express their confidence in them.
