Article
The Greek economy: The two-speed path and disposable income
Questions
Is income transfer costs for the employee?
The administrator-partner of the IKE Domestic Company goes on a trip to close an agreement or to provide services provided by IKE, He pays these expenses (fuel, dinners, accommodation) with his personal card and then prepares an expense report by entering the original receipts present. and if the company pays it by making a deposit to his personal account,
is there a question about deductibility of the cost?
Is there a question of charging a digital transaction fee?
Answer
- Accommodation costs and travel expenses, as long as the provisions mentioned in no. chief executive KEME.EP 13280/26.5.2015 document, which does not represent income for the employee (on return with legal documents).
- It cannot, on the one hand, be a benefit in kind to pay sums of money to the employees and the movement costs are not covered by documents issued in the name of the paying company, on the one hand, since the payment is in money. is not such a benefit (POL. 1113/2015), on the other hand, the amounts paid to the employees are extraordinary fees and are taxed cumulatively to the amounts taxed in the scale of paragraph 1 d ‘Article 15 of Law 4172/2013 regarding KFE
- Amounts representing extraordinary fees and increased earnings are not subject to Digital Transaction Fee, in accordance with Law 5135/2024.
- Since you are referring to extraordinary fees paid by the company to the manager, the income from them covers the existing assumptions based on personal purchases (payment with his own financial resources), of the manager.
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Management of employee hospitalization
Can you please let me know how we will manage the period an employee is in hospital during the payroll calculation? How will the days in hospital be calculated?
Answer
The Tenant is entitled during the unexplained barrier and as long as it lasts, according to article 658 of the Civil Code. the employer’s obligation, the salary he would receive if he actually came, during the corresponding time, and offered his work, which salary includes, in the sense of the above provisions, the additional benefits paid to him regularly and continuously with him instead. for the work provided hereunder, such as the increments for work on Sundays, exceptional days and nights, the increments for legal overtime etc. (Document 2039/30.8.1996).
Article 658 of the above-mentioned code includes the following: “The period of time during which, according to the previous article, the demand for wages is kept in the event of an obstacle, may not be longer than one month, if it is clear that the obstacle was there at least.” one year after the start of the contract, and half a month in any other case. The claim for this period exists even if the employer terminated the lease because the obstacle gave him this right”.
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Source: www.e-forologia.gr
Title: Navigating the Complexities of the Greek Economy: An Interview with Financial Expert Dr. Maria Katsouli
Setting: A cozy office at Time.news, with vibrant artwork on the walls reflecting Greek culture, as the editor, John Marcos, prepares to engage with Dr. Maria Katsouli, a leading expert in economics and tax policy in Greece.
John Marcos (Editor, Time.news): Welcome, Dr. Katsouli! Thank you for joining us today to discuss the current state of the Greek economy, especially in light of the growing concerns around disposable income and recent financial regulations.
Dr. Maria Katsouli (Financial Expert): Thank you for having me, John! It’s a pleasure to be here and share insights on these pivotal topics.
John: Let’s dive right in. The Greek economy seems to be on a “two-speed path.” Can you explain what this means for both consumers and businesses?
Dr. Katsouli: Absolutely. The two-speed economy indicates that while some sectors are experiencing growth and increased income—like tourism and technology—others, particularly traditional industries, are struggling. This disparity means that disposable income is not evenly distributed, leaving many households under financial strain while others thrive.
John: That’s an interesting point. Our recent findings highlighted that many employees, particularly those traveling for business, face unique financial challenges. How do income transfer costs factor into this?
Dr. Katsouli: This is a critical issue. When employees incur personal expenses like fuel and accommodation during business trips, there’s often confusion over tax deductibility. As per recent regulations, if these expenses aren’t documented under the company’s name, they can’t be classified as a non-taxable benefit, which can lead to unexpected taxes for the employee.
John: That sounds quite complicated. Are there additional fees that employees might face when reimbursed for these expenses?
Dr. Katsouli: Yes, indeed. According to the new laws, payments made by a company to cover these extraordinary fees should not be subject to the Digital Transaction Fee, which is an important distinction. However, any direct compensation that isn’t appropriately documented can lead to income being taxed cumulatively.
John: So, the lack of proper documentation not only affects taxation but also the employees’ perception of their real income?
Dr. Katsouli: Precisely. Misunderstandings around these issues can cause concern and disenchantment among the workforce. Employees may feel they are losing out financially, even when their employer tries to support them with reimbursements.
John: This leads us to the impact of disposable income in this “two-speed” economy. What does the future look like for those families who are heavily reliant on fixed incomes?
Dr. Katsouli: It’s challenging. Families on fixed incomes are feeling the pinch more than ever, especially with the rising cost of living and stagnant wages in some sectors. As prices increase, the purchasing power of these families diminishes, leading to a cycle of economic instability that the government needs to address through effective policy reforms.
John: What reforms do you think are most essential to support those who are struggling?
Dr. Katsouli: A multifaceted approach is required. This includes improving the efficiency of social welfare programs, increasing the minimum wage, and investing in training to help workers transition into sectors with growth potential. Moreover, enhancing transparency around tax settings and employee reimbursements will empower workers to better navigate their financial challenges.
John: Thank you for those insights, Dr. Katsouli. To conclude our discussion, what advice would you give to young professionals entering the workforce in Greece today?
Dr. Katsouli: I would encourage young professionals to be proactive and informed. Understand your rights regarding expenses and tax obligations, seek continuous learning opportunities, and adapt to the evolving job market. It’s essential to be adaptable and aware of where the growth sectors are in the economy.
John: Wise words indeed! Thank you again for joining us today and shedding light on these crucial topics. We appreciate your expertise and insights into the Greek economy.
Dr. Katsouli: Thank you, John! I enjoyed our discussion and look forward to seeing how the landscape evolves.
As the interview wraps up, John Marcos takes a moment to reflect on the ongoing challenges facing the Greek economy and considers the role of informed dialogue in driving positive change.