2024-08-29 10:30:30
The “die has been cast” and the government is proceeding, from 2025, to reduce the living allowance, by 30% on average, with three interventions that overturn the current regime that burdens more than 1.5 million taxpayers every year.
The moves on the chessboard of presumptions are aimed not only at the implementation of a pre-election commitment of the government, but mainly at the reduction of unfair burdens. A reduction that is part of the general package of measures to support incomes in the difficult “battle” with accuracy, which sweeps the market, especially when the forecasts from the said “front” are also ominous for the next year.
Given, moreover, that this year’s “package”. Thessaloniki International Exhibition but also the following ones will be “limited”, due to the new budgetary restrictions set by the EU. from 2025, the government is studying how especially for wage earners and pensioners, who anyway cannot hide the incomes they receive – as they appear pre-filled in their tax returns – there will be an even greater reduction of 30% by 2027.
In any case, however, the “removal” of proof of living, in addition to their reduction, it will also include the correction of all distortions, but also their tightening for offenders, who harm the State.
It is pointed out that in the category of evidence it includes cars, real estate, yachts, swimming pools, and even the fees parents pay to send their children to private schools.
Income earners are “champions”.
According, moreover, with the data of AADE, The “champions” of the presumptions are the income earners, as they paid the largest amounts of taxes, while the employees and pensioners count the most “victims” of the measure.
Regarding, therefore, the new “regime” of proof of living, the interventions considered in the system are the following:
- Changes to the way estimates are calculated of living for residences, I.X. and pleasure boats. Essentially, the system for determining the amounts of subsistence allowances is expected to be modified, so that they more closely approximate the actual annual maintenance and use costs of the specific assets. The direction that has been given is that the new amounts that arise are reduced on average by 30% compared to the current ones. However, the scales as well as the criteria for determining the amounts of the presumptions will change, in order to make them fairer and more efficient.
- Amendments to the provisions on minimum amounts proof of living of 3,000 euros for singles and 5,000 euros for married or cohabiting couples. These amounts may be reduced or may remain in force only for those taxpayers who are not burdened by other presumptions of living. Essentially, the minimum subsistence allowance amounts, whether reduced or not, are being considered to apply only to anyone who is “housed” in the homes of their parents or relatives and at the same time does not have other assets in their name that are considered subsistence allowances, such as cars, boats and swimming pools . If they have such assets, the subsistence allowances corresponding to them are considered not to be added to the minimum allowance amounts.
- Elimination of distortions and injustices caused by the determination of taxable income based on the presumption of subsistence. Extreme cases of overtaxation of households, wage earners and pensioners with very low incomes due to the application of the presumptions of living and the characterization of the income determined on the basis of the presumptions as coming from business activity will be sought to be eliminated. The aim is to stop the phenomenon of families with meager real annual incomes being asked to pay income taxes disproportionately high to their real incomes, even higher than their incomes.
Presumptions that may increase taxation
Based on the current regime, the imputed costs that currently threaten to increase personal taxation are the following:
● Residences: the presumption is calculated based on the square meters of the residence, whether it is privately owned, rented, or even with a free concession.
● I.X. cars: the presumption is based on the cubic centimeters and starts from 4,000 euros for 1,200 cc cars. and above.
● Fees paid for private schools and training institutions.
● Expense for domestic helpers, car drivers, teachers and other staff.
● Pleasure boats based on their length.
● Swimming pools, depending on their surface or whether they are outdoor or indoor.
● Expenditure on acquisition of assets, within the year, such as real estate, cars, yachts and goods of great value.
● Minimum objective living expenses of 3,000 euros for single, divorced or widowed, and 5,000 euros for spouses submitting a joint declaration, as long as actual or presumed income is declared. It is pointed out that, today, taxpayers who declare a lower actual income than their presumed one have the possibility to cover the difference, citing income which is tax-free or taxable, income of previous financial years or by taking loans.