Taxation: Taxation with new criteria for freelancers

Without an increase in tax rates but with the application of a new type of criteria and the help of artificial intelligence and e-books myDATA the financial staff of the government plans the changes in the tax regime for freelancers, self-employed and individual enterprises. According to information, the new framework is based on an algorithm which will determine the minimum incomes that professionals should declare to the IRS based on income, expenses, living expenses and acquisition of assets.

The elements for freelancers

The elements that will be taken into account and will outline the financial profile of each professional include among others:

• The professional activity carried out by the professional (doctor, lawyer, plumber, refrigeration engineer, etc.)
• The business address of the taxpayer. Criteria are the area where the activity is carried out, the surface area of the commercial building, the amount of rent
• The number of employees employed by the professional
• Fixed expenses, expenses for mobile and fixed telephony, electricity and water supply, petrol, utilities, heating oil
• Expenses made via cards from Greek and foreign banks
  POS Register available for businesses

The application of the mathematical formula will determine a minimum taxable income for freelancers and self-employed which will be taken into account in the cross-checks carried out by the tax control mechanism on the incomes declared by taxpayers. The aim is to reveal undeclared incomes mainly from categories of professions that declare incomes below 10,000 euros, as well as sectors that present particularly high costs and low net profits.

Digital Clientele

The establishment of a digital customer list is also under way, with which AADE will see the number of customers who receive thousands of professionals every day. Once the tax control mechanism knows the number of customers, it will be able to calculate the income of each professional and compare it with the receipts it has cut and the income it has declared to the Tax Office. The first who will be asked to adhere to the digital clientele are Catering and event organization companies while the list drawn up by the leadership of the Ministry of National Economy and the AADE includes professionals who in in the past they had an obligation to keep the so-called additional books (they were abolished for many in 2013). Although final decisions have not yet been made, it is being considered to keep a digital book of clients doctors, gyms, physiotherapists –estheticians, nursing homes, parking, workshops and vehicle rental companies, tutors but also hotels– rooms for rent.

Source: ot.gr