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Even young entrepreneurs up to 35 years fall under the strikes of the tax authorities, eliminating the exemption from payment of income tax they used to take advantage of within three years, provided that their annual income is up to 30,000 euro.

Moreover, the abolition of the tax relief in question is introduced retroactively from January 1^st, 2011, which means that the economic team of the government once again reversed the financial parameters for thousands of traders and freelancers, who will have to pay in 2012 income tax under the reduced tax-free limit of  5,000 euro if their declared income exceeding 9,000 euro.

The new tax on businesses and freelancers, which strikes not only the young business, but mainly the development, particularly at a time when the forecasts for the Greek economy became increasingly gloomy, is included in the amendment, submitted on 14^th of October in the parliament with the draft law for a single payroll table, which introduces a payment of extraordinary double solidarity contribution for employees and retirees in 2012 («Z» f. 14.10. 2011).

In particular with regard to the specific measure in the amendment it is noted that "the provisions of Art. 6, para. 7 of the Code of income tax are repealed. The repeal applies to income from 01. 01. 2011 onwards."

From the financial year 2012 until 2015, all taxpayers without exception will receive in a multi-letter of advice the income taxes and the extraordinary solidarity contribution they have to pay for income from the previous year as well as the tax paid by businesses and freelancers.

With the amendment introduced to the parliament workers and retirees are invited to pay in 2012 double, and in some cases triple solidarity contribution through the trick invented by the financial team of the government to "inflate" the budget revenues and present to the Troika primary surplus .

Through the above mentioned amendment to Art. 29 from the law 3986/2011, paragraph 6 is added, which regulates the way of deduction against the special solidarity contribution, which is done by employers on income from labor, received by employees against salary, by the retired from the social security services, workers against wage, for services they offer in employment relationship lasting over one year for the same employer or on employment relationship for an indefinite period; officers and lower command employees of the Merchant Navy who work on commercial ships and with the exception of income from item 8, al. 5, Art. 6, so that the special solidarity contribution be collected in advance in installments (each month).

Noted that the deduction which will be made on income from wage labor against the special solidarity contribution will apply to income received from 1^st of January 2012 to December 31^st, 2014

On the other hand, the specific amendment provides that:

* Special solidarity contribution for the financial years 2012 - 2015 (calendar years 2011-2014) will be indicated in a notification letter for the due income tax for the respective financial years and in the letters of notification themselves the amounts withheld against the special contribution will be indicated.

* Special solidarity contribution for individuals, as an additional tax is not deducted from the income tax or from the tax calculated based on the scale.

* The amount of deductions made on income from wage labor against the special solidarity contribution will be indicated in the annual revenue certificates issued to employees as it is done with the tax deducted for wage labor.

Additional burden

Reducing non-taxable minimum to 5000 euro as well as the deduction of the solidarity contribution from the wages and pensions would represent a significant burden for low and middle income from next year.

Ministerial Decision

The ministerial decision will regulate:

a. The way to reflect the solidarity contribution in 2011 in a notification letter for the due income tax in 2011, which will be sent in 2012.

b. The special way to pay the solidarity contribution in installments in 2011, so as to avoid accumulation and tensions caused by payment in 2012 of the solidarity contribution for both 2012 (by deduction) and for 2011 (with the determination of income tax for 2011).

Also, with the amendment in question a regulation is introduced through which over the financial year 2012 and the following ones (calendar year 2011 and the following ones) in the notification letters containing the calculation of income tax should be stated also the commercial tax for individuals who have business or freelancers, specifying that the tax in question as an extraordinary one is not deducted from the income tax or from the tax calculated based on the scale.