According to Law 4387 / 16, article 97, paragraph 1, as of 01.06.2016 until 31.05.2019 there is an increase by 1% of the monthly contribution percentage for the additional insurance in the integrated social security fund Ε.Τ.Ε.Α (former IΚΑ) concerning all employees, which shall be calculated to 3,50% for the insured employee, and 3,50% for the employer on the salary remuneration amount of the employee, instead of 3%, which as the rate applicable up to now both for the insured employee and the employer.  

According to the aforementioned Law (article 94, paragraph 4), as of 01.01.2016 the special increment of the pension insurance in the engineers sector of the Greek insurance fund TSMEDE is abolished.

For the settlement of the differences of the special increment, arising for the period from 01.01.2016 to 31.05.2016, there is a relevant announcement expected to be received from the social security fund TSMEDE.

To this point we would like to note that the aforementioned maximum (limit) amount for the calculation of the contributions of the social insurance fund TSMEDE, is now defined at € 5.860,80 as of 01.06.2016.

Finally, according to article 38, paragraph 10 of the aforementioned law, as of 01.07.2016 the salary remuneration of the employees in the private sector, the social security contributions, as well as the withholding tax on salaries shall be deposited by the employer via bank account remittance and shall then be transferred accordingly to the accounts of the beneficiary employees, the social security funds and those of the Greek State.

For this reason, each liable employer must sign a relevant contract with the bank of the his choice.

For the implementation of the aforementioned regulations there is a joint decision expected, of the competent authorities (Ministry of Finance and Ministry of Labor and Social Affairs), which shall define the necessary details.  

NOTE: This article does not cover advisory, but only informational purposes, and cannot serve, as a basis for further actions, on the part of   the reader. Reception of specialized advice is required.

Our company does not hold any responsibility for any actions, taken by the readers, based on the present article.

According to article 44, of Law 4389 / 2016, for the income obtained from the tax year 2016 and onwards, the imputed burden of the user of the vehicle conceded by a natural or legal person or legal entity to the employee or partner or shareholder or member of the Board of Directors, increases to 80% (from 30%) of the vehicle cost posted as expenditure in the books of the employer.

As expense in the employer's books are considered the following costs: depreciation, annual vehicle circulation taxes, repairs, maintenance and the relevant financial cost corresponding to the purchase or the rent of the vehicle.

In case the costs of each current period are zero, the imputed income of the vehicle concession is set on eighty per cent (80%) of the average costs or depreciation of the last three (3) years.

The aforementioned burden is added in a separate line in the annual salary certificate of the employees and is declared as payroll remuneration from employed occupation, even for those, who are not in an employment working relationship, such as partners, shareholders, and members of the Board of Directors without any salary remuneration.

An exception from the aforementioned law, are the sellers, who make use of private or leased vehicles. 

NOTE: This article does not cover advisory, but only informational purposes, and cannot serve, as a basis for further actions, on the part of   the reader. Reception of specialized advice is required.

Our company does not hold any responsibility for any actions, taken by the readers, based on the present article.

The new tax scale for income from rents has been released through which the Ministry of Finance expects a revenue increased of € 140 million. The taxation scale for income from rents is as follows: 

At the same time, the number of property owners, who have to pay the additional tax (property tax, Greek abbreviation ENFIA) has been more than doubled.

More specifically, tax payers, who are obliged to pay the additional tax (ENFIA) are those who have property of an objective value of € 200,000 or more, compared to the limit of € 300,000 which was in force until last year.

Practically, that means that 608.622 owners, especially in the cities, are going to be asked this year to pay, compared to the 300.000 owners of the year 2015. For the area from € 200.000 up to € 300.000 of ownership, 2 rates apply, 0,1% and 0,15%, while for ownership of more than € 300.000 even higher rates than in 2015 will be applied, beginning by 0,3% and reaching even the 1,15%.  

In regards to uncollected rents, according to the Ministerial Decision POL 1024/2016, in order for these to be declared as “uncollected income” from the lease of real estate, in accordance to paragraph 4 of Article 39 of the Income Tax Law, photocopies need to be submitted before the submission of the income tax return, Article 1 of Law. 4250/2014, of orders, judgments / decision of courts, which have been brought up until the submission deadline of the annual tax return.

It has been clarified that the “uncollected income from rents” has to be reported on the form "DETAILED STATEMENT FOR RENT OF REAL ESTATE" E2, which will be amended accordingly and will be transferred to a special code of the form E1 upon submission of the relevant income tax return.

The taxpayer and owner of real estate who faces the issue of “uncollected rents” for 2015 until the date he needs to submit his income tax return, has to go a few days before the submission of his income return to the relevant Tax Office and submit copies of any judicial act he has undertaken against the tenant, that means any payment order, any lease adjudication, court decision for eviction or judgment for rental amounts, or any claim for eviction or judgment for rental amounts has been exercised against the lessee.  

After the submission of the above mentioned copies and their registration in the system a specific code becomes released for "Uncollected Rent" on the Forms E2 and E1, so, when submitting the tax return, these rents are recorded in the column of debts and will not be taxed as income for the stated period. They will normally be registered and taxed in the year in which they are going to be collected.

NOTE: This article does not cover advisory, but only informational purposes, and cannot serve, as a basis for further actions, on the part of   the reader. Reception of specialized advice is required.

Our company does not hold any responsibility for any actions, taken by the readers, based on the present article.

The living evidence, which has been renamed in "objective living expenses" are amounts set by the Ministry of Finance and they represent the minimum annual costs of use and maintenance of assets such as houses, cars, yachts, aircrafts and pools, but also amounts, which according to the Ministry of Finance, represent the minimum annual of expenses of the taxpayer for its standard personal living coverage (Articles 30-34 of Law 4172/2013 and Ministerial Decision 1073 / 26.03.2015).

Objective Expenses and Services

Read more ...