Change of the tax bracket as of 1/1/2020

   May 17, 2021

OPEX informs you that according to Article 6 of Law 4646 / 12-12-19 some changes are expected with regard to income tax:

Amendment of article 15 of the Income Tax Code, regarding the tax rate Paragraphs 1 and 2 of article 15 of Law 4172/2013 are replaced as follows: “1. Taxable income from paid work and pensions is taxed according to the following tax bracket: Income (Wages, Pensions, Business Activity) in euros
Tax rate (%) 0-10.000 9% 10.001-20.000 22% 20.001-30.000 28% 30.001-40.000 36% 40.001 – 44% when the real income of the taxpayers does not exceed the amount of 6,000 euros and their imputed income does not exceed the amount of 9,500 euros and
if no business activity is carried out for which a declaration of commencement of business activity or individual agricultural activity is required, this income, excluding income from capital and goodwill of capital transfer, and the added presumptions gain/loss, are taxed in accordance with this paragraph and paragraph 1 of Article 16.

If the actual income exceeds the amount of six thousand (6,000) euros, the excess amount is taxed in accordance with paragraph 1 of Article 29. The provisions of this article also apply to taxpayers who have ceased their business activity, for the income they acquired after its cessation. 2 Paragraph 1 shall not apply to income from employment earned by: (a) officers serving on Merchant Marine ships, who are taxed at a rate of fifteen percent (15%); and (b) the lower rank crew serving on Merchant Marine ships, who are taxed at a rate of ten percent ( 10%). The above incomes are taxed independently with extinction of all tax liabilities of their beneficiaries only for these.

Exceptionally, for the officers and the lower rank crew, who are foreign tax residents, for the income they earn from hired work on ships of the Merchant Marine which sail under the Greek flag and perform exclusively international voyages, with the withholding of the income tax carried out by the coefficients of cases a) and b) of paragraph 2 of article 15 and the special solidarity contribution carried out in accordance with the provisions of paragraph 6 of article 43A of this law, their tax liability is extinct only for these. ”

The new scale which is valid from 1.1.2020 is the following:

(+30) 0-10,000 9%
(+30) 10,001-20,000 22%
(+30) 20,001-30,000 28%
(+30) 30,001-40,000 36%
40,001- 44%