According to an amendment submitted to the draft law “Corporate governance of the Public Limited Companies and other subsidiaries of the Hellenic Holdings and Property Company, management of the State’s holdings in limited companies and arrangements for the Hellenic Holdings and Property Company, assessment of its solvency vis-à-vis the State and creditworthiness of natural and legal persons and establishment of an Independent Credit Assessment Authority, establishment and operation of a Central Credit Registry, Supplementary State Budget for the financial year 2022 and other provisions of an economic and developmental nature.” the special solidarity levy of article 43A of Law 4172/2013 is abolished, for all incomes acquired from 1.1.2023 onwards, while for the year 2022 the same exemptions as for the year 2021 will apply.
What issue does the evaluated regulation address?
The evaluated setting addresses the issue
a) the expansion of exemptions from the special solidarity levy for 2022, and
b) the abolition of the special solidarity levy for all incomes acquired from 1.1.2023 onwards.
Why is it a problem?
The special solidarity contribution of natural persons was imposed by law 3986/2011 in the context of the country’s fiscal adjustment measures due to the debt crisis. With the country’s exit from the regime of enhanced supervision, conditions have changed. At the same time, the income of citizens, in recent years, has been under pressure due to successive and overlapping exogenous crises (the COVID-19 disease pandemic, side effects of the war in Ukraine).
The abolition, therefore, of the special solidarity levy, from 1.1.2023 onwards is an essential measure to protect the income of citizens, taking into account that the purposes for which it was imposed have now disappeared.
Moreover, due to the difficult situation this year, special care is required for citizens whose income is subject to greater fluctuations, such as all those employed in the private sector (salaried and self-employed), property owners, etc. and therefore an exemption from the special solidarity levy is granted, for these incomes, as early as 2022.
With the proposed arrangement the exemption from the special solidarity contribution is extended for the tax year 2022 to all incomes of article 43 A of the C.F.E., with the exception of income from employment in the public sector and pensions, so that they take effect the same exemptions that applied to tax year 2021 and furthermore, the special solidarity levy is abolished for all incomes for which it is applied based on article 43A of the C.F.E., for incomes acquired from 1.1.2023 onwards.
This is an important measure to reduce tax burdens and increase the disposable income of citizens.
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
Par. 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.
The special solidarity contribution of article 43A is abolished for all incomes of this article acquired from 1.1.2023 onwards.».