The countdown to the upcoming changes and tax breaks designed by the government.
A number of tax breaks have been announced which will be implemented in the near future and will significantly improve the disposable income of taxpayers.
The Minister of Finance, Christos Staikouras, even opened a “window” for new tax cuts in 2022, if the course of the economy exceeds the forecast for growth of 5.9% in 2021.
See the main changes that are coming in the near future:
Undeclared square
Meanwhile, in the next few hours, the gates of the electronic platform of KEDE for the declaration of the forgotten squares reopen. Property owners will have a new opportunity, most likely the last one, by the end of the year to disclose to the municipalities the undeclared areas of their properties without the retroactive charges (up to 13 years) and the current fines that reach up to 200%.
Those who proceed with the submission of the declaration of the forgotten squares, must this time pay a surcharge of 20% at the due end of the period from 1 January 2020 until the day of submission of the declaration.
Abolition of Parental Benefit Tax
From October 1, the tax for parental benefits and donations for property up to 800,000 euros per parent is abolished. For example, in order to transfer an apartment from father to daughter, worth 300,000 euros, a parental benefit tax of 1,000 euros had to be paid. Now this parental donation will be tax free. Also for the transfer through parental provision of property with a total value of 600,000 euros, the tax currently amounts to 16,500 euros. From now on the tax will be zero. A donation of 800,000 euros from a parent to a child had today an independent tax of 10%, ie 80,000 euros, while from now on the tax will be zero. The measure concerns parental benefits and donations for first degree relatives, ie parents, children, husband, wife, father-in-law, mother-in-law.
ENFIA
By the end of November, the exercise for the change of the real estate tax rates will be completed, after the adjustment of the objective values, the addition of new areas in the objective system, but also the abolition of the additional tax. The government’s commitment is that most will pay less tax, while those who avoid the additional tax will pay a higher fee for the expensive real estate they own. In any case, the fiscal result will be neutral, ie what will be collected from ENFIA in 2021, as much will go to the state coffers in 2022.
Corporate profits
The tax rate is reduced from 24% to 22%, for business profits.
VAT reduction: The reduced rates extend to transport, coffee and non-alcoholic beverages, cinemas and the tourist package until June 2022.
Gyms – dance schools
The VAT rate in gyms and dance schools is reduced from 24% to 13% from October 1, 2021 until June 2022.
Electronic transactions
From January 2022 until 2025, 30% of the expenses incurred by taxpayers with electronic means of payment to specific professional sectors and up to the amount of 5,000 euros per year, are deducted from the taxable income of individuals. Receipts that will give an extra tax deduction include those related to plumbing, electrician, oil painter, household services, cleaning services, child care services, home help services, gyms, dance schools, taxis, legal services. Expenditure on medical, dental and veterinary services will be doubled to the minimum expenditure threshold of 30% by electronic means of payment.
Incentives for mergers and acquisitions
From October 1, 2021, the tax on capital accumulation is reduced by 50%. Through partnerships, sole proprietorships can create a new legal entity of a higher form, in order to be subject to the taxation of legal entities on favorable terms.
For companies-legal entities that merge into a new legal entity or that are merged by absorption by an existing legal entity, creating significant economies of scale, a 30% discount will be provided on the amount of tax due for three years.
VAT on animal production
The VAT on animal feed intended for animal production is reduced on a permanent basis from October 1, 2021 from 13% to 6%.
The article These are all tax breaks that come right away – VAT cuts and tax breaks published in NewsIT .