Gov't Tables New Tax Bill

Taxes (credit: Tax Credits)

The government finally introduced the new tax bill. It is based on two income tax scales, one of which is for salary and pension earners and the other for free-lance professionals. Looking over the new tax bill, which was dispatched in a press release from the state news agency, we notice that the income tax scale foresees a maximum rate of 42 percent on annual incomes of up to 42,000 euros, while the tax rate for incomes of up to 25,000 euros is 22 percent and for incomes from 25,001 euros to 42,000 euros the rate is 32 percent.

For free-lance professionals, the tax rate will be 26 percent for incomes up to 50,000 euros and 33 percent for incomes in excess of the 50,000 euros.

The tax-free arrangement is abolished for freelance professionals, while a tax deduction of 2,100 euros is introduced for pensioners with up to 21,000 euros annually. For higher incomes, the tax deduction is reduced to 100 euros per 1,000 euros income.

A 10 percent tax deduction on medical care and hospital expenses and on court-imposed alimony to a spouse is maintained unchanged.

Further, a separate scale is introduced for incomes from rents, which are no longer classified together with wage/salary and pension incomes, providing for tax rate of 10 percent on annual incomes from rents of up to 12,000 euros and a rate of 33 percent for rent incomes in excess of the 12,000 euros.

Finally, the tax rate for interest accrued on deposits is increased to 15 percent from the current 10 percent.