Tax Changes

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Kilkis
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Tax Changes

Postby Kilkis » Sun Feb 19, 2017 11:18 am

Yet more tax changes are being proposed. Do you get the feeling that this is moving from the area of "blood out of a stone" into the area of "exsanguination". Perhaps they can get it through before Pascha? Does anybody get the impression that the first half of the last paragraph is a lot more important to the IMF than the second half or is it just me being cynical.

Warwick

bettyboo
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Joined: Wed Feb 20, 2008 11:48 am

Re: Tax Changes

Postby bettyboo » Sun Feb 19, 2017 12:08 pm

I think the words corporate tax show you aren't being cynical

YoMo2
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Re: Tax Changes

Postby YoMo2 » Sun Feb 19, 2017 1:56 pm

Kilkis wrote:......... Does anybody get the impression that the first half of the last paragraph is a lot more important to the IMF than the second half or is it just me being cynical.


Too damn right!

Andrew
"It's all in the implementation"

mouche
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Re: Tax Changes

Postby mouche » Sun Feb 19, 2017 2:53 pm

"Sources say that the options on the table concern setting the tax-free ceiling at 7,000 euros (or even lower) per year, against 8,636 euros today."

Doesn't this mean to say that if you earn less than 8,636 euro you do not not pay tax on your income?

Kilkis
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Re: Tax Changes

Postby Kilkis » Sun Feb 19, 2017 5:11 pm

Correct. Reducing the tax free limit to €7,000 would mean that people with an income between €7,000 and €8,636, who currently pay no tax would need to pay tax. The legal minimum wage in Greece equates to an annual salary of about €8,200 so currently someone earning the minimum wage would not pay income tax. If it was dropped to €7,000 they would start to pay. It does seem a little bizarre to decide that there is a minimum income that someone needs to survive but then to take tax out of that minimum?

Taxation rules vary from country to country. Some countries have a zero tax band and some don't. In the UK for example it is £11,000, roughly equivalent to €12,870. In Greece it has been as high as €12,000 but has been reducing steadily over the last few years. It is also worth noting that it decreases if the income increases. Below €20,000 you get the full allowance but above €20,000 it reduces until above about €40,000 there is no tax free limit, i.e. you pay the full tax rate on every cent of income. Thus it reduces the tax burden for low income families but not for higher earners.

Warwick

mouche
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Re: Tax Changes

Postby mouche » Sun Feb 19, 2017 8:18 pm

So how much tax on income would you have to pay in Greece if you earn 8.636 euro and the government reduce the tax-free ceiling to 7.000 euro?

The tax-free ceiling in Norway is equivalent to 6.200 euro but if you end up earning more(f.inst. students working part-time) you partly have to "make up" for not having paid any tax on the first 6200 euro.

Kilkis
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Re: Tax Changes

Postby Kilkis » Mon Feb 20, 2017 12:28 am

The initial tax rate is 22 % so someone with an income of €8,636 would pay about €360 in tax if the tax free threshold were to be reduced to €7,000. Not a huge amount but half a months salary, or all their property tax or a couple of electricity bills to someone on that income so significant.

Warwick

mouche
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Re: Tax Changes

Postby mouche » Mon Feb 20, 2017 9:18 am

Interesting; the tax-free amount is higher than what we have, the tax on 1.636 euro is lower in Greece than what we pay and we also have to pay property-tax. Maybe I should become a tax-resident of Greece? Actually the roadtax is also lower in Greece.

Kilkis
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Re: Tax Changes

Postby Kilkis » Mon Feb 20, 2017 9:33 am

The tax rate rapidly increases with increasing income, property tax is also paid here and there is a solidarity tax paid on all income, i.e. you pay income tax on earned/pension income, interest tax on bank interest, dividend tax on share dividends and then you pay a solidarity tax on the whole of that income including any income that is regarded as non-taxable, possibly because it remains taxable in the country of origin under a DTA. Full details that should allow you to calculate your total tax burden if you were tax resident in Greece in this thread five posts down.

Warwick

mouche
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Re: Tax Changes

Postby mouche » Tue Feb 21, 2017 9:30 am

Kilkis wrote:The tax rate rapidly increases with increasing income, property tax is also paid here and there is a solidarity tax paid on all income, i.e. you pay income tax on earned/pension income, interest tax on bank interest, dividend tax on share dividends and then you pay a solidarity tax on the whole of that income including any income that is regarded as non-taxable, possibly because it remains taxable in the country of origin under a DTA. Full details that should allow you to calculate your total tax burden if you were tax resident in Greece in this thread five posts down.

Warwick


Well, our taxrate increases rapidly with increasing income, propertytax has to be paid, a solidrity tax (we use a different name but basically the same thing), we pay tax on interest earned as well as dividend tax on share dividends (at a much higher rate than you do in Greece!), and in addition we also pay a "wealth tax" og about 1% on your combined net assets (regardless of your income) and also a tax of 15% on the source thus totally dependant on a doubletax agreement with the country we move to. In all the taxes in Greece are LOWER than in my country.

In addition we pay much higher taxes/dues on cars, tobacco and alcohol and the VAT is 25% on (most) all goods and services!

Your call.

Stavros
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Re: Tax Changes

Postby Stavros » Tue Feb 21, 2017 12:25 pm

''The government struck a deal with the lenders that requires ΝΟ further measures'' - is a phrase that the Greeks keep hearing since 2010 ....

Stavros
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Re: Tax Changes

Postby Stavros » Tue Feb 21, 2017 12:28 pm

mouche wrote:
Well, our taxrate increases rapidly with increasing income, propertytax has to be paid, a solidrity tax (we use a different name but basically the same thing), we pay tax on interest earned as well as dividend tax on share dividends (at a much higher rate than you do in Greece!), and in addition we also pay a "wealth tax" og about 1% on your combined net assets (regardless of your income) and also a tax of 15% on the source thus totally dependant on a doubletax agreement with the country we move to. In all the taxes in Greece are LOWER than in my country.

In addition we pay much higher taxes/dues on cars, tobacco and alcohol and the VAT is 25% on (most) all goods and services!

Your call.



The difference dear Mouche is that you have a state that at least works in its basic form. I spent 4 years working in London so I have first hand experience...

I just went to my local OAEE office today to renew my state insurance cover (for which I pay 705 Euros PER MONTH). I left as the person responsible was sick and his computer was not working....

scooby
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Re: Tax Changes

Postby scooby » Tue Feb 21, 2017 3:51 pm

Stavros wrote:
mouche wrote:
Well, our taxrate increases rapidly with increasing income, propertytax has to be paid, a solidrity tax (we use a different name but basically the same thing), we pay tax on interest earned as well as dividend tax on share dividends (at a much higher rate than you do in Greece!), and in addition we also pay a "wealth tax" og about 1% on your combined net assets (regardless of your income) and also a tax of 15% on the source thus totally dependant on a doubletax agreement with the country we move to. In all the taxes in Greece are LOWER than in my country.

In addition we pay much higher taxes/dues on cars, tobacco and alcohol and the VAT is 25% on (most) all goods and services!

Your call.



The difference dear Mouche is that you have a state that at least works in its basic form. I spent 4 years working in London so I have first hand experience...

I just went to my local OAEE office today to renew my state insurance cover (for which I pay 705 Euros PER MONTH). I left as the person responsible was sick and his computer was not working....
What is state insurance cover?
Men in suits will always make you pay.

Kilkis
Posts: 8773
Joined: Sat Apr 21, 2007 3:58 pm
Location: Near Chania

Re: Tax Changes

Postby Kilkis » Tue Feb 21, 2017 5:01 pm

Like National Insurance I think.

Warwick

Stavros
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Location: Crete
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Re: Tax Changes

Postby Stavros » Wed Feb 22, 2017 10:25 am

The former EOPYY - IKA - OAEE cover, now called EFKA. Greece's public health system...


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