Income tax even without an income!

Thousands of taxpayers will be called upon to pay Income tax even if they don’t have an income! Contrary to what they have been used to so far, the new income tax return form (E1) that will be mailed in a few weeks reflects tens of “original” ways whereby the ministry of Finance will force them to pay taxes for income they don't have!

With the new system, there will be a deducible income calculated from the sq/m and the objective residence value that each person declared in 2010, for which they will be taxed in 2011. Even if they’re guests or paying rent, they will be taxed any way the tax office wants!

It’s even worse if they declare the residence has been bought on a loan since despite the tax exemption they might have, the amount to be paid is counted as “annual objective cost”. And if they remain un-taxed they will lose the right to easily justify future purchases with savings from previous years.

According to the form to be sent to 8mil households and companies:

* from this year, all statements by professionals and traders are submitted via the internet
* March 1 marks the start date for freelancer tax return form submission, and
* May 2 is the start date for salaried employees and pensioners to submit their tax returns.

Also, those who have already been caught by tax authorities must "turn themselves in". Especially for professionals, if they were fined, they should state their violation and thus lose the tax free threshold of 12,000 euros. Ie there will be tax even on a 1-euro profit.

The new form requires information for those who transfer funds abroad or collect income from foreign real estate, while the deposits returning to Greece must be declared too.  

The changes reach those who were specially treated so far too. The codes where they declared their income separately are eliminated and they will all be taxed based on single tax scale up to 45% (due to scale) instead of just 5% (independently).