Tax cuts: Who will see tax cuts



In 2021, private sector employees, self-employed, self-employed, taxpayers with rental income and dividends as well as businesses will have tax breaks. Through a series of tax reduction interventions, millions of households will see an increase in their disposable income. are typically temporary in nature and are classified as extraordinary. However, the government’s plan stipulates that, if conditions and developments allow, tax cuts will become permanent. The 2021 draft budget includes temporary tax cuts and relief, such as the suspension of the solidarity contribution, the reduction of insurance contributions by 3 percentage points, as well as the reduced VAT for the first four months of the year. Reliefs with regard to the provision of paid services in the private sector and the tax year 2020 with regard to the income from doing business of natural persons and the income from capital (rents, dividends, rights, etc.). – Extension for six months of the validity of the reduced VAT on all personal transport from 24% to 13% valid until 31 October 2020. The reduction of VAT on catering beverages from 24% to 13%, which is valid until October 31, 2020, is also extended until April 30, 2021. The application of reduced VAT 13% to 90% of the cost of tourism package compared to 80% that was valid before is extended until the end of April 2021 while today it is valid until October 31. – Reduction by three percentage points of the insurance contributions of the employees of the private sector. From January 1, 2021, insurance contributions will be reduced to 36.7% from 39.7%. Cutting contributions means increasing net income for private employees and reducing costs for employers. Both taxpayers and businesses have a number of arrangements at their disposal to facilitate them. Thus, for debts that have been suspended for their finances. affected and for the period from March to June 2020, a new special regulation is introduced. These debts have been suspended until the end of April 2021 and can then be settled either interest-free in up to 12 monthly installments or with interest at 2.5% from 13 to 24 monthly installments. All those who have been financially affected by the pandemic and lost, for any reason settlement of partial payment or out-of-court mechanism in the period March-September 2020, can continue to pay the regulation regularly from October 2020. For all debts, new and old, taxpayers have at their disposal the permanent settlement of debts of up to 48 doses. Debts from regular liabilities, such as personal income tax and ENFIA, can be settled in up to 24 monthly installments while contingent tax debts (eg, inheritance tax) can be settled in up to 48 monthly installments. in Google News and be the first to know all the newsSee all the latest News from Greece and the World, at



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