Many who were thinking of parenting or donating real estate to their children and had not done so so far are finally lucky because they will not pay tax.
Taxpayers who will rush to become parents benefits or donations from 1 October 2021 and then are included among the "winners" of yesterday's announcements of Prime Minister Kyriakos Mitsotakis at the TIF for the abolition of the tax for amounts up to 800.000 euro. The only condition is that the parental benefit or donation concerns first degree relatives.
The announcement is especially important during this time period as hundreds of notarial deeds are performed daily., due to increases in fair prices and taxpayers run to anticipate the extra charges from 1/1/2022. Many who were thinking of parenting or donating real estate to their children and had not done so so far are finally lucky because they will not pay tax.
Today, up to the amount of 150.000 euro the transaction is tax free. From the 150.000 euro and above a tax scale is applied, which provides for tax 1% from the 150.000 and up to the amount of 300.000 euro, of the amount of 300.000 euros and up to 600.000 euro tax arises 5%, while for amounts exceeding 600.000 euro tax arises 10%.
For example for a parental benefit 300.000 euro, the tax to be paid corresponded to the amount of 1.500 euro.
Donation tax scale – legacies – parental benefits
CATEGORY A (spouse-children-grandchildren-parents)
|Stairs||Coefficient||Ladder tax||Plus. Property Value||Proportional Tax|
There is a special tax-free inheritance tax 400.000 euro for surviving spouse (after 5 years of marriage) and his minor children. Informal cash donations are taxed off-scale at a single rate 10% and without tax-free limit.
Which categories win
To the "winners" of 14 Prime Minister's announcements concerning tax relief still belong:
- the employees of the private sector since the 2022 will maintain the increases they saw in January 2021 through the reduction of insurance contributions by 3 percentage points and the solidarity contribution. Features, gross wage worker 1.200 euro (1016 net) has an annual benefit 207 euro (158 euros from the reduction of insurance contributions and 49 euros from the solidarity levy.
- Businesses ,since for the profits of the current year will be taxed the 2022 at a rate 22% instead 24% which is today. For example,business shows profits for the first time 20.000 euros would pay tax 4.800 euros and will pay 400 euros less,4.400 euro
- those property owners, pay lower ENFIA the 2022 after system reform
- the approx 75.000 Borrowers who have joined the Bridge program and their loan installment will be subsidized by 40% for another three months
14 reliefs 2,5 billion. euro
particularly, the 14 tax breaks with reductions in direct and indirect taxes above 2,5 billion euros announced by the Prime Minister is:
1. Extends to the whole 2022 the exemption from the special solidarity contribution and the reduction of the three points of the insurance contributions in the private sector.
2. Since January 2022 business tax is reduced from 24% in the 22%
3. The tax on parental benefits-donations for first degree relatives is abolished, concerning parental benefits-donations up to 800.000 euro, from October 1st 2021.
Up to the amount of 150.000 euro the transaction is tax free. From the 150.000 euro and above a tax scale is applied, according to the table above, that is, there is a tax 1% from the 150.000 and up to the amount of 300.000 euro, of the amount of 300.000 euros and up to 600.000 euro tax arises 5%, while for amounts exceeding 600.000 euro tax arises 10%.
It is noted that the donation amounts should be taxed or legally exempt from tax.
4. The rate of return of all repayable advances decreases according to the fall of the gross income of the company. More specifically provided that the employee retention clause provided for in each cycle of refunds has been complied with, is returned:
- For companies that have started operations before January 1st 2019 and have positive gross income in 2019:
- The fourth is returned (25%) if they have a drop in gross revenue in 2020 in relation to 2019 above him 70% and record pre-tax losses.
- The third is returned (33,3%) if they have a drop in gross revenue in 2020 in relation to 2019 between 30% and 70% and record pre-tax losses.
- For the other companies the 50%.
- For new businesses that have started operations after January 1st 2019 or had zero gross revenue in 2019:
- The fourth is returned (25%) if they have a drop in gross revenue in 2020 in relation to 2019 (if they had recorded positive gross income in 2019) above him 30% and record pre-tax losses.
- For the other companies the third is returned (33,3%).
Based on the above figure it is estimated that:
- To 28% companies will return in the fourth (25%),
- the 39% companies will return the third (33,3%),
- the 33% will return it 50%.
It is reminded that until today in the returnable 1 to 3 was returned by 50% until 100% depending on the drop in turnover, while for all businesses in returnable 4 to 7 was returning the 50%.
In addition to the above, a discount applies 15% in case of a lump sum payment of the amount to be refunded up to 31 December 2021. Otherwise the amount is paid to 60 installments from January 2022.
Budget costs borne by 2021: 660 million. euro.
5. The application of reduced VAT rates to transport is being extended, coffee and soft drinks, in cinemas and the tourist package until June 2022.
6. The VAT rate is reduced in gyms and dance schools by 24% in 13% from October 1st 2021 until June 2022.
7. The program of subsidizing loan installments of households affected by the Pandemic "GEFYRA" is extended for three months with coverage 40% on loan installments.
8. Tax incentives are provided for the use of electronic transactions: Since January 2022 and up to 2025, the 30% of expenditure incurred by electronic means of payment to specific professions and up to the amount of 5.000 euros per year, deductible from the taxable income of natural persons.
In addition, medical expenses, Dental and veterinary services count twice as much as the minimum cost limit 30% by electronic means of payment.
9. The framework of taxation is being reformed
The lottery prizes each month will be scaled and will reach up to 50.000 euro. In addition at Christmas there will be a special lottery with prizes up to 100.000 euro.
10. Granting an increased discount for expenses related to green economy, energy and digitization. From January 1 2022 and for three years, selected costs related to green economy, energy and digitization are deducted from the gross income of small and medium-sized enterprises at the time of their realization, increased by up to one hundred percent (100%).
11. Incentives for mergers and acquisitions:
From the 1st of October 2021 decreases by 50% the tax on capital accumulation.
Individual companies can, through partnerships, create a new legal entity of a higher form, to be subject to taxation of legal persons on favorable terms.
For companies-legal entities merged into a new legal entity or merged by an acquisition by an existing legal entity, creating significant economies of scale, a discount will be provided 30% on the amount of tax due for three years.
Lending: Acquisitions and mergers are one of the five eligibility criteria for access to loans 12,7 billion. Euros of the Recovery Fund, with a very low interest rate.
12. After the adjustment of the objective values, the calculation coefficients of ENFIA that will apply for the 2022. The additional ENFIA tax will be integrated in the main scale while the 2022 there will be a further tax reduction.
Thus it is abolished as a separate tax and is integrated in the main ENFIA calculated with a basic scale of rates in the context of the revision of the legislation in order the charges for the vast majority of 6,3 millions of owners, which are charged each year with this tax, not to increase the 2022 compared to 2021. After the completion of the ENFIA reform, There will be an additional legislative intervention that will provide for the further reduction of the tax for which there will be information before the submission of the budget..
13. It is reduced on a permanent basis from October 1 2021 VAT on feeders intended for animal production from 13% in the 6%.
14. Heating benefit. The amount of aid for the heating allowance that will be given in December is increased 2021 against 20%.