Tax Cuts.

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Kilkis
Posts: 11090
Joined: Sat Apr 21, 2007 3:58 pm
Location: Near Chania

Tax Cuts.

Postby Kilkis » Tue Oct 08, 2019 12:13 pm

According to this ekathimerini article, those of us who are tax resident in Greece should see a tax cut next year. Can anyone understand what the red bit of this statement copied from the article means?

    The tax cuts planned concern a series of measures that will see all taxpayers paying less tax next year. This is because the basic rate for yearly incomes up to 10,000 euros will shrink from 22 to 9 percent, which will also concern the first 10,000 euros of income in excess of that annual amount. However, the tax-free threshold of 8,636 euros will require some 30 percent more online transactions.

I presume it means that the first €10,000 is taxed at 9 % and the next €10,000 is taxed at 22 % since currently the first €20,000 is taxed at 22 %. Also it would have been better to refer to a 30 % increase in the number of online transactions needed to qualify for the €1,900 rebate* rather than the €8,636 tax-free threshold, since that is how it is calculated. While the rebate is equivalent to a tax-free threshold it seems a bit odd talking about the first €8,636 being tax-free while at the same time talking about the first €10,000 being taxed at 9 %?

Despite the niggles, I make that a €1,300 reduction in tax paid so quite a few extra beer/wine/gin/meal tokens. Anybody receiving significant income from dividends on shares would also see that part of their tax halve.

Warwick

* Note that not everybody qualifies for the rebate and the size of the rebate reduces once income exceeds €20,000

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