The Ministry of National Economy and Finance is proceeding with the radical change of the taxation system for freelancers and the self-employed together with the implementation of measures to combat tax evasion. The relevant changes are expected to be presented by Finance Minister Kostis Hatzidakis to the cabinet meeting on Tuesday aiming to submit them to Parliament at the end of November.
The changes will specifically target self-employed workers who reportedly declare extremely low annual incomes in an effort to crack down on tax evasion.
According to sources, the changes will concern the system for taxing the self-employed and not to the taxation rates, which will remain unchanged, based on the results of the 2022 income tax declarations analysed by the Independent Authority for Public Revenues (AADE).
These show that nearly half a million of self-employed workers, just under 70 pct, declare earnings of up to 10,000 euros a year, which is less than the minimum wage, and only 4.3% declare more than 40,000 euros a year. This means that many employers are declaring a smaller income than the people in their employ.
Moreover, electronic invoices will become mandatory as of next year while the universal application of myData also begins. The interconnection of cash registers with POS is expected to be completed in approximately 450,000 businesses by the spring of 2024.
