On Tuesday 28/11 the Ministry of Economy and Finance submitted the draft law «Measures to curb tax evasion».
The draft law is introduced for discussion and processing in the Economic Affairs Committee on Thursday.
The draft law includes reforms aimed at addressing the problem of tax evasion in a holistic and multi-level approach, tax fairness and ensuring the necessary resources to strengthen social policy, according to the Ministry of National Economy and Finance.
The interventions implemented by the bill include:
- The mandatory posting of revenues and expenditures in MyData within 2024.
The ban on the use of cash in real estate transactions.
The new system of taxation of self-employed persons.
The increase of the fine imposed on traders and businesses for using cash in transactions over 500 euros, to twice the amount of the transaction.
The regulation of the short-term rental market.
The cessation of cooperation of fuel marketing companies with smuggling offenders.
In addition, the reform is complemented by the following interventions that do not require legislation and will be implemented through administrative acts:
- The completion of the interconnection of cash registers with POS in the first months of 2024.
The extension of the obligation to have an electronic payment system (EFT/POS) to other sectors of the retail market that currently do not have one.
The activation of the digital consignment note, on a pilot basis from the beginning of 2024 and in full by the end of the year.
The mandatory electronic invoices within 2024 for which a request has been submitted to the EU.
In the previous days, in the framework of the public consultation, more than 2,800 comments were submitted by citizens and stakeholders, which were taken into account in shaping the draft law before it was introduced in Parliament.
The main point amendments and specifications that are introduced concern the following:
Reduction of the business tax regardless of the amount of declared income. A 50% reduction in the business tax for ALL self-employed persons regardless of whether they declare incomes higher than the minimum imputed net income.
Clarification as to the combatant of the presumption. In order to eliminate disputes, an explicit provision is introduced in the draft law stating that a freelancer may dispute the amount resulting from the application of the presumption of minimum remuneration in addition to the reasons already in force which render the presumption rebuttable (illness, force majeure, etc.). The prerequisite is to request an audit by the tax authorities in order to prove the accuracy of his/her declaration of income below the presumption.
Amendments to the increase of the presumption based on turnover. As is well known, the amount of the presumption of minimum remuneration for self-employed persons is increased according to the years of professional activity, the total payroll and the amount of turnover of the business. Specifically for the amount of turnover, according to the final regulation, the increase amounts to 5% on the amount by which the turnover of the liable person exceeds the average annual turnover of the K.A.D. in which the liable person generates the highest income. For example, a self-employed person with an annual turnover of EUR 35,000 exceeds the average annual turnover of the MCI where he/she has the highest revenue by EUR 10,000 (annual turnover of EUR 35,000 - average annual turnover of MCI EUR 25,000 = EUR 10,000). Therefore, the 5% surcharge will be applied on the amount of EUR 10,000. In this way, the surcharge is applied in a more proportionate manner and with a lower burden on the taxable persons.
Additions to the list of freelancers included in the reduced - by 50% - presumption of minimum remuneration a) those with a disability equal to or greater than 67% (those with a disability rate of 80% and above are fully exempt from the presumption of minimum remuneration), b) parents of a single-parent family with minor children c) parents with dependent children with a mental or physical disability rate of at least 67%, d) parents of large families.
Tax reduction for building upgrade costs. Expenditure on the purchase of goods and services related to the energy, functional and aesthetic upgrading of buildings reduces, equally distributed over a period of five years, the income tax of individuals, up to the tax due for each year, with a maximum total expenditure limit of EUR 16,000. Expenditure on materials is taken into account up to an amount corresponding to 1/3 of the amount for services. All expenses must be incurred from invoices that have been paid by electronic means of payment and transmitted to the AADE by the supplier via the myDATA system.
