Specifically, Mr. Staikouras, speaking on SKAI radio, said that for wages in the private sector – which are exempted from the solidarity levy in 2021 – the abolition will take effect and will be reflected in the payroll from January of the following year.
In contrast, for the remaining categories of income, including capital and capital gains, the repeal will apply on the incomes of 2020, which will be reflected in the tax returns of 2021. Consequently, in this particular case the benefit will be with the settlement statements next summer.
Asked whether the abolition of the solidarity levy will acquire permanent features, he estimated that there will be fiscal flexibility in 2022, however, separating fiscal flexibility from fiscal laxity.
He wanted to underline the government’s will for permanent reductions in taxes and levies “when the pandemic bracket is closed in relation to fiscal margins”.
Also, he cited the permanent reliefs implemented by the government before the pandemic began, saying that this year the corporate income tax for 2019 incomes is 1.5 billion euros, compared to 3.5 billion euros for 2018 incomes. And he noted that in the interim it has decreased the tax rate from 29% to 24%, while at the same time the tax advance was reduced or zeroed.
POMIDA’s argument with which it intervened in this matter was that property owners also belong to the private sector, and indeed many of them were hit hard by the 40% cut in their rents, and therefore would be inconsistent with the words of the Prime Minister about strengthening the private sector, to exempt them alone from the abolition of the solidarity levy, in the midst of paying a very heavy ENFIA…
After all, no fight is lost…
The specialization of the economic intervention package announced by Prime Minister Mr. Kyriakos Mitsotakis in Thessaloniki Helexpo Forum and interested property owners like the Minister of Finance Mr. Christos Staikouras:
1th Measure: Suspension of the payment of the solidarity contribution for the year 2021.
From the implementation of this meter benefit approximately 1.2 million private sector employees, freelancers, farmers and income earners subject to solidarity levy.
Only incomes are exempt from this suspension from pensions and employment income paid to public sector employees.
However, public employees and pensioners who have additional income from any other sources, such as rents, since the exemption concerns income and not taxpayers.
The solidarity levy suspended in 2021 applies to the tax year 2020 for income from business activity, capital and capital gains transfer of capital (rent, dividends, interest, etc.), and the tax year 2021 for income from employment, as the latter is withheld within the tax year.
In this way, from January 2021, the monthly withholding for solidarity levy carried out on the payroll of private sector employees is zeroed out, while freelancers, farmers and income earners will not pay solidarity levy when clearing the tax of the declaration of the tax year 2020.
In addition, for those civil servants and pensioners who have income from other sources, the solidarity contribution will not be calculated for the sources of these of income.
This measure aims to strengthen the private sector of the economy, which has been particularly affected by the pandemic, to promote investments and create new jobs .
2o Measure: 3o Refundable Down Payment Cycle.
3th Measure: Hyper-discounts for digital and green fixed capital investments.
4o Measure: Exemption from ENFIA of the inhabitants of small, uncritical islands.
The tax residents of Greece who have their main residence on islands with a population of less than 1,200 inhabitants, located in the North Aegean Region, in the Regional Sections of Kalymnos, Karpathos-Heroic Island of Kasos, Kos and Rhodes, in the municipality of Gavdos and in the complex of offshore islands. This measure currently covers residents of the following 28 small islands:
- Fourni, Agios Minas and Thymaina of the Regional Unity of Ikaria,
- Agios Efstratios of the Regional Unit of Limnos,
- Samiopoula of the Regional Unit of Samos,
- Oinousses, Psara and Antipsa of the Regional Unit of Chios,
- Agathonisi, Kalolimnos, Plati, Telendos, Pserimos, Lipsi, Farmakonisi, Arkoi and Marathi or Marathos of the Regional Unit of Kalymnos,
- Saria and Kasos of the Regional Unit of Karpathos,
- Megisti (Kastelorizo), Tilos and Halki of the Regional Unit of Rhodes,
- Gyali and Nisyros of the Kos Regional Unit,
- Gavdos of the Chania Regional Unit and
- Ereikoussa, Mathraki and Othoni of the Regional Unit of Corfu.
The exemption concerns natural persons who have their main residence in these areas, and covers the total property they have in said areas. The property of these persons in other regions of Greece is excluded.
The purpose of the measure is to motivate the residents to stay or settle in these islands, but also to economically strengthen the areas in question that face limited access.
5th Measure: New payment extension and suspension of tax collection and insurance obligations.
A new extension is granted, until April 30, 2021, to natural and legal persons, for the payment of their certified debts to D.O.Y. and the Control Centers, for which an extension and suspension of collection has already been granted.
The same applies to the tranches of arrangements and departmental facilities, which are also already under suspension.
The above obligations will then be repaid, within the framework of a settlement program with particularly favorable terms, which will provide for the payment in 12 interest-free installments or in 24 installments with an extremely low interest rate, of the order of 2.5 %.
6th Measure: Extension for six months of the reduced VAT rate on specific products and services.
7o Measure: Suspension of auctions of vulnerable borrowers’ first homes.
Following the actions of the Government, in cooperation with the member banks of the Hellenic Banking Union, the auctions concerning the 1th residence are suspended, until the end of the year, for those borrowers who belong to the category of vulnerable.
A condition for the above suspension is the submission of a relevant request by the vulnerable borrower to the bank.
After this date, the New Debt Settlement and Second Chance Provision Code will have been passed and implemented, to which borrowers can join and which receives special provisions for the truly vulnerable citizens. Citizens who will be supported by the State through subsidizing their loan installment.
