And an official end to a heavy memorial tax comes with an amendment submitted to the Parliament: The final abolition of the solidarity levy, for everyone – ie. and for civil servants and pensioners – provides for a relevant amendment that will enter into force from January 1, 2023. For the current year, the exemption from the contribution is limited to those categories for which the tax was temporarily abolished in 2021, in other words for private employees and professionals.
Vangelis Durakis writes
So, with the new year they will see salary increases… by the way civil servants and pensionerswhich will automatically appear in their monthly earnings as the solidarity contribution is withheld from wages and pensions along with income tax unlike the self-employed, income earners and other categories of taxpayers who are confirmed with the next year’s tax return, according to enikonomia .gr.
The solidarity levy was introduced as an extraordinary memorial measure with article 29 of Law 3986/2011 on the incomes of natural persons over 12,000 euros with rates starting from 2.2% and gradually reaching 10% for those with incomes over 220,000 euros.
The benefit of abolishing the solidarity levy
But how much is it? the annual benefit for employees and pensioners from the abolition of the solidarity levy?
- For an annual income of 13,000 euros, that is, for net monthly earnings of 1,083 euros, the annual benefit will be 22 euros.
- For an income of 14,000 euros or a monthly salary of 1,116 euros, the annual benefit is 44 euros.
- For an income of 15,000 euros or 1,250 euros per month, the benefit is 66 euros per year.
- For an income of 16,000 euros or 1,333 euros per month, the relief amounts to 88 euros per year.
- For an income of 17,000 euros or 1,466 euros per month, the benefit is 110 euros per year.
- For an income of 18,000 euros or 1,500 euros per month the annual profit is 132 euros.
- For an income of 19,000 euros or 1,583 euros per month, the benefit amounts to 154 euros annually.
- For an income of 20,000 euros or earnings of 1,666 euros, the benefit is 176 euros per year.
- For an income of 25,000 euros per year or 2,083 euros per month the annual benefit is 426 euros.
- For an income of 27,000 euros or 2,250 euros per month, the net annual increase is 526 euros.
- For an income of 30,000 euros or a net monthly salary of 2,500 euros, the annual profit is 676 euros.
What does the amendment say?
The amendment 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 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.
Specifically, the amendment states:
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:
- 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 incomes of this article acquired from 1.1.2023 onwards”
Exemptions from the pretense fee
In the same amendment it is also provided the exemption from the obligation to pay the application fee:
- and for tax year 2022 (applied to tax years 2019-2021), regular status farmers, for which the first five (5) years have passed since the date of keeping books and their inclusion in the normal VAT regime. as well as the fishermen of coastal fishing, who operate fishing vessels up to twelve (12) meters, between verticals.
- for tax year 2022 onwards, natural persons carrying out business activity and legal persons and legal entitieswho 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.