Freelancers: The 4 changes in the imputed income tax bill

50% reduction in presumption fee for all freelancers, disputing presumptive income if freelancers ask for it to be verified, reduction to 5% of the presumption based on turnover and applying a reduced 50% presumption for those with a disability 67% and above, parents of single-parent families, large families and children with disabilities 67% and above provide for the improvements made by the MINISTRY in the provisions of the bill concerning the new presumptive taxation system of freelancers, self-employed and sole proprietorships..

In particular the changes foresee the following:

1. Reduction of the application fee regardless of the amount of declared income. The application fee is reduced by 50% for ALL freelancers regardless of whether they declare incomes higher than the minimum presumptive net income.

2. Clarifications regarding the rebuttal of the presumption. An explicit provision is inserted in the draft law for the removal of disputes that the self-employed person can dispute the amount resulting from the application of the minimum wage presumption in addition to the reasons that are already valid and which make the presumption rebuttable (illness, force majeure, etc.). A necessary condition is to request an audit from the tax authorities in order to prove the accuracy of his declaration of income less than the presumptive one.

3. Amendments regarding the increase of the amount of the presumption based on the turnover. As is known, the amount of the presumption of the minimum wage for freelancers is increased according to the years of professional activity, the total of the payroll and the level of turnover of business. Especially for the amount of turnover, according to the final regulation, the surcharge amounts to 5% of the amount, in which the debtor’s turnover exceeds the average annual turnover of the K.A.D. in which the debtor realizes the highest income. For example, a freelancer with an annual turnover of 35,000 euros exceeds the average annual turnover of the CA where he realizes the highest income by 10,000 euros (annual turnover of 35,000 euros – average annual turnover of the CA of 25,000 euros = 10,000 euros). Therefore, the surcharge of 5% will be applied on the amount of 10,000 euros. In this way, the surcharge is applied in a more proportionate way and with less burden on the debtors.

4. Additions to the list of freelancers included in the reduced – by 50% – minimum wage presumption. a) those with a disability equal to or greater than 67% (those with a disability rate of 80% or more are completely exempt from the minimum wage presumption), b) parents of single-parent families with minor children c) the parents with dependent children with a rate of mental or physical disability of at least 67%, d) the parents of large families.

Source: ot.gr