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Tax burden for employees and retirees contains the bill "Urgent measures to implement the medium-term fiscal strategy framework for 2011 - 2015" which will be submitted to parliament on Monday. 

In particular, according to the provisions of that bill, from January 1, 2011 retroactively applicable is the new regime for receipts based on which discounts, but also solidarity fee cannot exceed 300 euros, a fact which will lead to higher withholding tax in the coming months. 

When it comes to the receipts, if a taxpayer has received a greater discount than 300 euros he will be forced to return it and pay the joint fee because the bill clearly states "in cases where the tax financial statements for 2011 are completed and a tax of more than 300 euros is deducted, then the additional tax shall be certified by a special tax for individuals." 

Late yesterday the Treasury seems to have repealed the provision due to the violent reactions caused by the retroactive taxation. 

Also it should be noted that in the future in order for taxpayers to reach the taxable income of 8,000 euros, they will have to collect receipts for 15,000 euros, because according to the bill, "the sum of receipts for expenses to be submitted is determined at 25% of the taxpayer’s individual income, according to the general provisions and the income amount of up to 60,000 euros. If the amount of submitted receipts for costs incurred by the taxpayer is less than the above amount, then the difference is subject to a tax rate of 10%." 

It should also be noted that for income up to 40,000 euros, the discount rates for housing loans, medical expenses, contributions, etc., will remain 20%, but "for that fraction of the cost, which corresponds to the amount above this income (e.g. 40 000 euros) to reduce the rate of tax is limited to 10%."

Craft Tax 

Noteworthy is the fact that artisanal tax will start from 400 euros, as it provides that: 

* For businesses or individuals, freelancers, located in tourist areas and in settlements with a population of 200,000 inhabitants, is fixed at 400 euros per year 

* For businesses or individuals, freelancers, located in cities with population over 200,000 inhabitants, 500 euros per year. 

Attica and Thessaloniki are considered as one location. 

Moreover, if those firms have branches there is an additional craft tax of 300 euros for each branch. 

"Shock and awe" among taxpayers caused the new tax cocktail "which in the next six months will need to bring to the state treasury the sum of 3.095 billion euros and by the end of 2015 a total of 14.090 billion of additional taxes. 

With the reduction of the amount of taxable income and the increase in indirect taxes, the “Cocktail” of new taxes will take 450 euros per month from nearly 5 million taxpayers or about 5,500 euros a year if kept in mind that from 2012 the change in receipts system takes place. 

In particular, from January 1, 2012 imposed will be a ceiling of 300 euros for tax return and removed will be the 10% discount that applies today to receipts collected beyond those needed to prove the non-taxable income. 

It should be noted that with the measure until now, the state has lost this year 612 million euros, but it believes that it will recover those losses in 2012, when 612 million euros should be collected when the new regime will be applied. 

The income tax attack began this summer with an increase in withholding tax on salaries and pensions due to the reduction of taxable income of 8,000 euros, of which the economic staff of the Government expects to collect 338 million euros in 2012 - 1.012 billion, by continuing with: 

* special solidarity contribution, which all taxpayers are invited to pay and it is estimated that it will bring 1.38 billion euros this year
* the increase of VAT from September 1, from 13 percent to 23 percent, which will "cost" another 300 million euros and 700 million euros in 2012 

* the tax increases on cigarettes, with change in the tax on tobacco and reduction of the time for payment of excise duty on firms from 56 to 26 days, which would bring the Treasury another 150 million euros this year and more so in 2012 

* the increases in tolls with 10%, which will "cost" 100 million euros 

* the extraordinary payment for vehicles with larger engine capacity, expensive real estate, yachts and pools that will bring 150 million euros 

* the declaration of ownership of private yachts, an amount of 150 million euros 

* the "settlement" of the issue of illegal constructions, which will bring 300 million euros 

* the special consumption tax, which may yield an additional 250 million euros this year and 315 million euros in 2012 

As for the new tax imposed on freelancers and artisans, it is estimated that it would bring 400 million euros in 2012, while another 220 million euros will provide the new enhanced indexes, which will apply to all taxpayers. 

It is noted that the evaluation and reduction of tax relief this year, naturally it cannot expect revenue in 2012 but family budgets are still burdened with another 380 million euros. 

On the other hand the reduction of tax-exempt property tax threshold from 400,000 euros to 200,000 euros will "throw" more owners in the tax network, which will bring additional 445 million euros in 2012. 

It should be emphasized that despite the increase in excise duty on heating oil from 21 euros per ton to 60 euros per ton, which will raise the cost for households with 5-6 cents per liter, but also the alignment of tax for companies, the plan to the ministry reports that revenues this year will be reduced by 188 million euros and 404 million euros in 2012. 

Real Estate Fund 

The executive law on medium-term fiscal plan regarding the movable and immovable property includes absolute independence for the “Fund for private ownership of land" with the possibility of legalizing illegal buildings owned by the Union of Greek Tourism (UGT), Concessions on beaches for up to 50 years and building permits issued within 60 days. 

The Executive Law of the medium-term fiscal plan, in which recorded are the general principles of operation of movable and immovable state property, specifies the main innovations of the new funds in formation and functioning, which are the following: 

* the Fund may, notwithstanding the written in Article 23a 3. 2190/1920, to use the product from issuing the bonds for the procurement of government bonds from the market. 

* it has the right for liquidation (according to the liquidation regulations of the company) of movable or immovable property. 

Operation 

However, Article 14 of the Bill provides that the operation of state property to allow direct transfer in favor of the investor to use the beaches and the right to make, use and operate the port activities, or expanding existing port facilities in the region. 

The concession is granted for a period of up to fifty (50) years. 

It also provides for the legalization of all full and partial illegal buildings owned by the GTU in order to speed up their operation. 

In order to accelerate, building permits for new legal structures will be issued within 60 days. 

Institution on the "surface"

New type of concession contracts lasting for up to 100 years creates the so called Institution on the surface, which again became topical in the Executional law of the mid-term fiscal plan. 

For "surface" is defined the property right, which provides separate comprehensive property (only with a time limit by the law) on property located on the ground, resulting in the transferor remains the owner of the land and the "surface owner" is the owner of structure built on it (existing or future). 

In the public sector 

As emergency measures of the medium-term program the bill introduces the term "labor reserves" in the public sector gives a “door” for cuts in redundant staff in public authorities and contraction of appointments.

In particular, the excess staff of entities is included in ranking lists, which are prepared separately for every legal entity from the Agency for Recruitment (ASEP), based on objective criteria. 

For 12 months after their designation as "surplus" staff, the employees included in this list will continue to receive salaries equal to 60% of their basic salary. 

Also, the staff in the public sector, legal persons or organizations of local government may request a reduction of working time to 50% with a corresponding reduction of their wages of up to five (5) years. 

Regarding the appointments in the public sector, successful ASEP candidates after January 1, 2009 will be appointed gradually according to their success rate until December 31, 2015! For 2011, the proportion of appointments is determined to 1 in every 10 who have left and appointments will be made from 2012 onwards in ratio 1/5. 

Flexibility in the workplace 

Provided in the Executive Law for the implementation of the medium-term program is the enhancement of flexibility in arranging working time, fixed-term contracts and the possibility of signing contracts for young people aged 18 to 25 years with low pay. 

How much pension will be reduced 

Provided in the Executive Law of the medium-term program on social security are the reduction of pensions from the pension fund of seamen (NAT) retrospectively from the beginning of 2011 by 6% and creating an unemployment account in the Employment Agency (OAED) and for the self-insured, with a monthly payment from August 1, 2011 amounted to 10 euros providers in Insurance Institute of freelancers (OAEE).

Meanwhile the Insurance Institute for freelancers introduces an annual revenue payment for companies according to their sectors, after a research, which will determine the percentage of the payment. 

The first 5 insurance categories in the Farmers Insurance Institute (OGA) are required and the transfer can be done every 3 years except for the first category in which a second transfer can occur after 5 years. 

Reduced with 10 percent is the one-time sum retrospectively from January 1, 2010 with from the Fund for the Welfare of Civil Servants and with 15 percent from the sector of the National Electric Company, for those who do not have an issued decision for granting the one-time sum payment. 

In the recovery rate, 80% of the salaries of retirees with 35 years of service, included are also family allowances and introduced is a ceiling, multiplied by four times according to the monthly GDP per capita for 1991, updated by the increase of pensions in the public sector. 

After 35 years of service pensions are increased by 2.5 percent for each additional year and after 37 years of service by 3.5 percent until the reach of 40 years of service. Increased are the payments mainly for the provision of employer and worker with 0.50% from August 1, 2011. 

Special payment 

Also introduced is a special payment for pensioners who have additional insurance from the Insurance Capital of intergenerational solidarity (AKAGE), amounting to of 3% -10% for pensions of 300 euros and up. The scale is increased by one point for every 50 euros to 650 euros and up. After January 1, 2015 the amounts from the special payment of pensioners will be transferred to AKAGE and will become income for AKAGE. 

New eligible costs in real estate and automobiles 

In connection with the eligible costs for new properties for the calculation of annual objective costs of the main spaces in an apartment/house, determined are the following: 

* for first 80 square meters of the main space - 40 euro per square meter

* from 81 to 120 square meters - 65 euros per square meter

* from 121 to 200 square meters - 110 euro per square meter

* from 201 to 300 square meters - 200 euro per square meter

* over 300 square meters - 400 euro per square meter

For the calculation of the annual objective costs of the auxiliary spaces in a main house, determined is the amount of 40 euro per square meter.

As for the annual objective costs for a car, determined are the following: 

* for vehicles up to 1,200 cubic centimeters  - 4,000 euros 

* for vehicles larger than 1,200 cubic centimeters added are 600 euros per 100 cubic centimeters until 2,000 cubic centimeters

* for vehicles larger than 2,000 cubic centimeters  added are 900 euros per 100 cubic centimeters  until 3000 cubic centimeters

* for vehicles larger than 3,000 cubic centimeters added are 1,200 euros per 100 cubic centimeters

It is noted that the extraordinary payment levied on cars, boats, airplanes, swimming pools, etc., are derived from the product of the sum of the annual objective costs multiplied by a factor of 5 percent. 

This effectively means that the extraordinary payment of a car over 2,000 cubic centimeters starts from 440 euros.