Incentives for punctual taxpayers are planned by the government, giving breathing space and relief for paying basic financial obligations. The new package of measures, which is expected to be announced by Prime Minister Kyriakos Mitsotakis at the Thessaloniki International Fair, includes targeted interventions that aim to reward citizens who meet their tax and insurance obligations, reversing the long-standing logic that relied mainly on imposing sanctions on debtors.
The focus is on the creation of a digital “white register” mechanism, i.e. an electronic file for every citizen and business that pays on time, has no outstanding debts and keeps active arrangements. This file will be automatically updated by the ADC and will activate a number of benefits: tax rebates, increased tax-free status, faster tax refunds, lower interest rates on arrangements and more favorable issuance of tax information.
The plan calls for extending the 4% tax credit for one-time repayment to other debts such as Inland Revenue and insurance contributions, with an increase of up to 5%. At the same time, a reduction in the rate for active arrangements and even a zero charge in cases of absolute consistency are being considered. In addition, an automated increase in the unencumbered limit will be applied for those who service their instalments on time, exceeding the current limit of €1,250.
Of particular importance is the commitment to faster tax refundsto those with a clean record, with no overdue debts or pending returns. Professionals and small and medium-sized businesses that depend on liquidity will be able to recover amounts much more quickly, without delays and without restrictions from withholding.
The same applies to the issuance of tax returns, where the withholding rate will be reduced for transactions such as the sale of real estate or payments from the government, as long as the taxpayer has an active arrangement and maintains it.
The intervention is not only limited to individuals, but is also extended to businesses, with the main criterion being compliance with tax, insurance and labour obligations, as well as the absence of complaints of uninsured work or tax evasion.
In special cases, a new favorable arrangement will also be offered for punctual taxpayers who suddenly find themselves in financial difficulty, with more installments, without fines and surcharges.
The aim of the new scheme is to change the climate. Until now, punctuality has not been rewarded – just not punished. Under the new logic, timely repayment of obligations and avoidance of infringements becomes a lever for tax relief, with a directly measurable benefit for the citizen. The relevant decisions are expected to be finalized in the near future and to be implemented gradually within 2025.
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