To the Prime Minister Mr. Kyriakos Mitsotakis
COM. To the Minister of Finance Mr. Christos Staikouras
The Deputy Minister of Finance Mr. Apostolos Vesyropoulos
The Deputy Minister to the Prime Minister Mr. Stelios Petsa
Here Athens, 9.11.2019
SUBJECT: Rebate for building upgrades: Repeal the inapplicable trap provision!!!
Dear Mr. President
One of your pre-election announcements which had a huge impact on public opinion, was the tax refund for the energy, functional and aesthetic upgrading of the buildings of of our country, which was a three-year proposal of our Federation to you and your staff, in order to upgrade the quality of the housing of the Greek people, to achieve the European goals for saving energy and protecting the environment but also to change the appearance of the cities of our country.
Unfortunately, with the tax bill under consultation, not only property owners are wronged blatantly because, while they are exempt from any relief, they will be obliged to the impossible for them 30% for expenses with “plastic money”, but with article 16 of the s.n. your above announcement is completely cancelled, given that this provides that:
1. The arrangement will only concern expenses for the provision of services and not for the cost of materials and equipment, as was absolutely clear from your announcements!
2. Its validity will only be for a three-year period, and with a maximum spending limit of 48,000!
3. The refund will only reduce the income tax and not the other taxes, and especially the ENFIA!
4. The tax reduction will be made in 4 equal annual installments, i.e. only 25% per year!
5. Those who have joined or will join the “SAVE” program are excluded!
6. AND THE TRAP: Those who make use of this provision, for any insignificant amount, will lose the well-known fixed, automatic and undocumented deduction of five percent (5%) of all their taxable rental income, for up to a whole seven years, i.e. until 31.12.2026 !!!
Example “application” of this incredible provision-trap: An owner with an annual income from real estate of €24,000 invokes technical invoices, year 2020, amounting to €1,000, for which he will be entitled to a refund of €400, namely €100 per year. But he will automatically lose the tax-free deduction of 5% from his taxable income, amounting to 1,200 euros per year, with a tax difference of 1,200 x 35% = 420€ + solidarity contribution (8,000€ x 2.2% + 4,000 X 5% = 376€ = €796 x 7 years = €5,572!!! Only if he invokes invoices of at least €14,000 will he be entitled to an equal refund of 40% = €5,600, but gradually over 4 years!
Mr President, the well-known misgivings and objections of the authorities of the Ministry of Finance regarding the implementation of your announcement, they can never justify setting such a trap at the expense of taxpayers of real estate owners of the entire country!!!
Therefore, and because such a provision cannot have any place in your Government’s bill, as it did not no place in your pre-election announcements, we ask you to do the right thing, in order to withdraw this entire totally unenforceable regulation-trap of article 16 of the tax bill.
With kind regards
The President
Stratos Paradias
The provision of Article 16 of the bill is as follows:
Addition of article 39 B KTE regarding the tax deduction for expenses related to receiving services for energy, functional and aesthetic upgrading of buildings
1. After article 39 A of n. 4172/2013 a new article 39 B is added as follows:
“1. The costs that will be incurred from 1.1.2020 until 31.12.2022 for receiving services related to the energy, functional and aesthetic upgrading of buildings, which have not already been included or will not be included in a building upgrading program, are reduced equally distributed over a period four (4) years, at a rate of forty percent (40 %) of their amount, the personal income tax persons, with a maximum expenditure of forty-eight thousand (48,000) euros.
- A necessary condition for the reduction of the tax from the amount of expenses,
is their proof with legal documents of the law. 4308/2014 and their payment by electronic means of payment, such as, indicatively but not limited to, cards and means of payment with cards, payment through payment account of Payment Service Providers of the law. 3862/2010 and use of an electronic wallet. - In case of application of the provisions of this article, case a’ of par. 3 of article 39, until 31.12.2026.
- By joint decision of the Ministers of Finance, Environment and Energy and the Governor of AADE, the conditions, the conditions, the procedure, as well as any other necessary detail for the implementation of this.”
- The provisions of par. 1 apply from 1.1.2020 onwards.
The link to the consultation where all owners should express their opinion is:
http://www.opengov.gr/minfin/?p=8986
