Thousands of Greek households are to be negatively affected when the new tax reforms are implemented by the government, with the first rush of panic already felt by taxpayers as well as the relevant services of the General Secretariat of Public Revenue. From Tuesday until October 30, it will be raining changes as demands for money to line state coffers grow. Taxisnet notices are being uploaded, with special income tax contributions, debt settlement installments demanded, and the single property tax (ENFIA) is also on its way to top it off!

Over the next 10 days, taxpayers will be called to dig deep into their pockets and scrape enough money for the following payments:

1. Debt settlements to the Tax Office:

Taxpayers went to bed on Sunday reassured by one regulation, but had a rude awakening on Sunday as taxisnet notices were posted that were different to initial calculations. Those paying off debt installments to the public sector will need to calculate their payment upwards as a new “cap” has been added and needs to be payed off by October 30.

In the first stage, only notices with increased amounts were posted on Taxisnet. These concern a million people who had entered the scheme for debt settlement in 100 installments that had been created to shift some of the burden but is now a trap for those who don’t have the money to meet their payments or the extra interest rates that have now been added on. Alternatively, those who are paying off their debts in 12 or 24 installments that had expected to see their amounts decreased – as promised (from 8% to 5.05% interest rates) – were disappointed to find no changes.

The notices that were finally uploaded caused confusion and turmoil as taxpayers found it hard to understand what they are paying and why! Changes are still pending and new notices will also be uploaded in somc ecases, e.g. amendments for those who don’t have property whose total objective value is over 150,000 euros, etc.
2.  Income tax clearances:

Apart from installments for old loans, taxpayers who entered the scheme for debt settlement will also have to pay off new taxes. Many people who have  already made their income tax payments are being called to pay again. Farmers and traders are being called to upload their Taxisnet clearances again so as to pay the increased tax downpayment (55% instead of 27.5% for farmers and 100% instead of 80% for traders). The new income tax clearances will be uploaded until Friday and include special solidarity contributions and passenger car contributions for 2,000 euros upwards.

3.  Joint property tax (ENFIA):

The first installment for ENFIA is due on October 30, and it now looks as though real estate owners will find out what they owe at the eleventh hour. ENFIA amounts should have been uploaded but it appears that they will finally be posted from october 28-30! Most home owners will pay the same amount as last year, provided the property they own is the same. The amount is due in five larger installments until February rather than the six installments last year.

4.  Private school VAT rates (and others):

It still remains undecided as to whether there will be a 23% VAT hike to private education. There is speculation as to whether there will be three VAT rates for education (23% for private schools, 13% for education institutions and no hikes for nursery schools), but discussion is  still up in the air.