News › Weekly Alert Article
Changes to Greek Taxation of Income
On 20 October 2011, the Greek Parliament voted in a new law, (captioned "Retirement Regulations, Unified Scale of Remuneration/Rank, Employment Reserves and other provisions applying the Medium-Term Fiscal Strategy Framework"), aimed at restructuring the public sector and at a fiscal consolidation, in line with the goals of the Medium Term Framework. Taxand Greece reviews the most noteworthy changes to private income tax policy as well as other income tax policies.
New tax scale for private individuals and other changes
The new tax Law modifies the income tax scale applicable to individuals as per the table below (applicable for income earned in the calendar year 2011). All amounts are in Euro.
| Bracket of Income|| Tax rate of bracket %||Tax on bracket || Total income tax ||Total tax |
| Excess ||45|
There is a tax-free bracket of Euro 9,000 for persons under 30 years old, pensioners above 65, and persons with disabilities. Furthermore, the tax free bracket is increased by Euro 2,000 in favour of taxpayers with one child, and Euro 4,000 for those with two children. An additional tax-free amount of Euro 3,000 is granted for the third child and each child beyond that.
The tax free bracket is granted to taxpayers provided that they file sufficient receipts of expenses concerning purchase of goods and services. The minimum value of receipts that should be filed with the tax authorities is 25 per cent of such income for income amounting up to Euro 60,000. Should the value of the receipts filed by the taxpayer be less than these percentages, the difference is subject to 10 per cent income tax.
Tax deductions are in principle repealed. There will be a decrease of the applicable income tax by 10 per cent for certain cases of expenses, such as medical expenses, insurance expenses, social security contributions, donations to welfare institutions etc. The relevant decreases are capped to a certain amount depending on the nature of the expenses.
Your Taxand contact for further queries is:
Yerassimos C. Yannopoulos
T. +30 210 6967066