The new tax bill that was put into consultation

The new tax bill that was put into consultation – The main changes that concern us.

Amendments to K.F.E. ( income tax code)

• Amends provisions of the tax residence. With the aim of attracting investment, clarify and simplify the law for tax purposes, while at the same time established alternative way of income tax of a foreign origin, with the payment of an annual flat tax in the cases of investment in excess of eur 500,000.
• Amendment of article 8 on the non-accrual of remuneration which, when collected will will now be taxed in the year that relate.
• Amended article 13 of the K.F.E. (benefits in kind) from 1.1.2020. Specifically increases the limit for the exemption of vehicles used for business purposes 12,000 to about 17,000, while in paragraph 3 of the article is deleted, the provision stated that "In the event that there is a written loan agreement, the total of the initial capital shall be considered as a benefit in kind. The advance payment of salary in excess of three (3) months shall be considered a loan."
• Established import tax rate of 9% for natural persons, professionals, farmers, workers and pensioners, from 22% today. The reduction is expected to benefit not only those who have income of less than 10,000 euros, but the taxpayers as a whole, since their income is taxed banded. In addition, reduced by one percentage point, and the rates for higher incomes. This provision applies for income earned in tax years starting on or after 1.1.2020 onwards.

The new tax bracket for income from 1.1.2020 :

• Employees, pensioners, self-employed and εισοδηματίες (those who receive income from rents) will have to carry out costs equal to 30% of the real income by electronic means, with a sentence of 22% on the difference, in cases which do not achieve the above limit. Valid from 1.1.2020.
• It is also provided that in the event that expenditures have been made relating to payments of income tax for individuals and ENFIA debt obligations for financial institutions and rentals, which exceed 60% of the real income, the required rate of expenditure is limited by the thirty percent (30%) to twenty percent (20%).
• Provided by 1.1.2020 deduction from gross income business for the expenditure relating to actions of Corporate Social Responsibility
• Provided by 1.1.2020 provision of incentives in firms in order to choose the purchase or lease of ecological car anti-pollution technology, to deliver them to their employees.
• Reduced the threshold from 500 to 300 euro for the transactions of the business with cash. Purchases over 300 euro, to be deducted from the gross income of the business should the payment be made with electronic means of payment. (Will be valid from 1.1.2020).
• Provided for the delete ανεπίδεκτων requirements up to 300 euros, without taking appropriate action to ensure the rights of recovery
• Imported motivation from 1.2020 for the realization of tasks associated with energy, functional and aesthetic buildings, with the granting of a tax credit of 40% for the costs of the work involved.
• Discharge (from 1.1.2020 ) by the injection of solidarity of all Disabled persons with a disability percentage of over 80% regardless of the type of disability.
• Drops the corporate tax rate from 28% to 24% for 2019, eνισχύοντας in this way, small and large businesses. Also introduced low tax rate of 10% for agricultural cooperative shapes.
• Reduced from 1.1.2020 the rate of taxation of dividends received from 10% to 5%
• Increasing rate (from 50% to 60%) on which is calculated the tax rate for the designation of countries with preferential tax regime. So, essentially, I made substantial changes to the member which is designated as a “member with a preferential tax regime” by the reduction in the rate of taxation of legal persons from 29% to 24%.
• Reduced the advance income tax for 95% of the tax that arises for Legal persons (for 2018).
• Suspended the tax on capital gains on the transfer of real estate until 31 December 2022.

Amendments to K.F.D. (Tax procedures code)

1) Extended the period of limitation in the case of a request of a Process of Mutual Settlement.

2) Amended the provisions of the limitation period in the K.F.D. The period of limitation in cases of tax evasion for certain uses is set at 10 years, and it is no longer an extension of 10 years for the case of non-submission of a statement. Is also removed the existing provision, which provides for a limitation period of 20 years in cases of tax evasion.

3) is Amended article 50 of the K.F.D. and set conditions for the joint and several liability (The new provisions have taken into consideration the recent decisions of the P.Sq.E.).

Amendments to the VAT

• Suspended the imposition of VAT on construction sites with permission from 1-1-2006 and hereinafter referred to as
• Reduction of VAT for baby items from 24% today to a reduced rate of 13%.
• Reduction of VAT on the helmets of motorcyclists and children's seats from 24% today to a reduced rate of 13%.

Other changes

• In the context of tax compliance proposed amendments with respect to the out-of-court settlement
• Increase in the number of doses of the existing settings (fixed setting).
• Amended provisions for the taxation of companies that invest in real estate.
• Amends provisions relating to the special property tax, and extended, and taxation of vehicles for public use until 2022.

Source Taxheaven

Analytically proposed for consultation of changes you can see here: https://www.taxheaven.gr/news/news/view/id/46258#