The final end of the solidarity levy for all is provided for by an amendment that was submitted to the Parliament a while ago by the Ministry of Finance and will be implemented from January 1, 2023. At the same time, the same amendment provides for the reduction of the price at the pump for heating oil from on October 15, but also exemptions from the payment of the application fee.
The above is the implementation of part of the announcements made by Prime Minister Kyriakos Mitsotakis to the TIF.
1. Solidarity contribution
The amendment was submitted to the multi-bill and provides for the abolition of the special solidarity levy of article 43A of Law 4172/2013, for all incomes acquired from 1.1.2023 onwards, while for the year 2022 the same exemptions will apply that applied and for the year 2021.
In practice, this means that apart from private sector employees, those who receive income from business activity, real estate, dividends that will be declared with the 2023 tax return are exempt from the solidarity levy.
More specifically, the amendment provides:
Expansion of exemptions from the special solidarity levy for the tax year 2022 and abolition of the special solidarity levy for all incomes for the tax year 2023 and thereafter – Amendment of par. 74 of article 72 of Law 4172/2013
Paragraph 74 of article 72 of the Income Tax Code (law 4172/2013, A’ 167) is amended:
a) in the first paragraph regarding the expansion of the scope of exemptions from the special solidarity levy for the tax year 2022,
b) with the addition of a third paragraph for the abolition of the special solidarity levy for all incomes acquired from 1.1.2023 onwards, and par. 74 is formulated as follows:
“74. For the tax year 2022, the incomes provided for in this article are exempt from the special solidarity contribution of article 43A, with the exception of incomes from salaried work in the public sector and pensions. If the income is determined in accordance with article 34, the present exemption is granted if for the two (2) previous tax years the alternative way of calculating the minimum taxation was not applied in accordance with articles 30, 31, 32, 33 and 34. special solidarity contribution of article 43A is abolished for all the incomes of this article acquired from 1.1.2023 onwards”.
2. End of pretension
The exemption from the obligation to pay the application fee is also provided for
• and for the tax year 2022 (applied for the tax years 2019-2021), the farmers of normal status, for whom the first five (5) years have passed from the date of keeping books and their inclusion in the normal VAT status. A. as well as the fishermen of coastal fishing, who operate fishing vessels up to twelve (12) meters, between verticals.
• for the tax year 2022 and from now on, natural persons carrying out business activity and legal persons and legal entities, which increase in relation to the previous tax year the total employment time of their employees, with a full-time employment relationship in one (1) year , for a period of at least three (3) months within the year, under the defined conditions.
3. Heating oil
Finally, the price of heating oil will be reduced by 20 cents per liter at the pump, from October 15 to December 31, with a provision for extending the measure if necessary. If the VAT is also calculated, then the reduction will reach about 25 cents per liter.
Specifically, the amendment provides: “the State Budget subsidizes the cost of internal combustion-heating oil available on the domestic market from October 15, 2022 to December 31, 2022. The amount of the subsidy is set at 0.20 euros per liter and authorizing provisions are set regarding the procedure for granting the subsidy, the liquidation mechanism, as well as the possibility of extending and adjusting the amount of the subsidy”.