Self-employed: The Government’s plan for changes to presumptive taxation
Significant changes are coming to the taxation method of citizens in a presumptive way, as the Ministry of National Economy and Finance plans and is expected to implement within the next months, the reformation of the presumptions of living from a zero basis and at the same time the horizontal reduction of them by 30% from 2025. At the same time in 2025 (for the year 2024) the presumptive income for self-employed will be adjusted, as it is linked to the minimum wage which has been readapted.
What applies to freelancers
Annual minimum professional fee:
- 0-3 years of work: €0
- 4 years: €3,603
- 5 years: €7,316
- 6 years: €10,920
- 7 to 9 years: €12,012
- 10 to 12 years: €13,104
- Over 12 years: €14,196
Exemption from minimum wage: Farmers, “Blocaki”, Disabled >80%
Minimum pay reduction of 50%:
- Disabled: 67% to 79%
- 1st Residence: In villages or islands
- Single children: With minors
Parents: Large children or disabled children >67%
What is being considered to change
Small reduction: Minimum imputed pay
Take into account: Family income
Easier process: Challenging evidence
Intersections: Through data myDATA
The elements for freelancers
The data from the 75,166 tax returns submitted so far by the freelance professionals and self-employed show the following:
- Almost 51% of professionals or 37,943 taxpayers fall within the income presumption. That is, the taxable incomes they declared are lower than the minimum presumptive income, as a result of which they are taxed on the basis of the presumption and have to pay increased amounts of tax compared to the previous years when they declared “poverty” incomes.
- Professionals, despite the “inflated” invoices, keep their distance from the AADE platform, through which they have the possibility to dispute the presumed income either for objective reasons or by requesting an audit.
Checkout
It is noted that self-employed people who believe that they are wronged by the minimum presumptive income have the possibility to request an audit by disclosing, however, detailed information about their income and property situation as well as their living expenses.
In this context, they must fill in a questionnaire about their sources of income, bank accounts, debit, credit and prepaid cards, cryptocurrencies, foreign travel, tuition fees, cash and even expenses for insurance premiums, electricity, water and telephone.