While the government is progressing with procedures to reform the tax system, DISY has prepared and is submitting a bill to the House plenary today for middle-income families to pay less tax.
Specifically, this will be attempted through a specific formula considered by DISY as targeted and focused on middle-income families, so that they may enjoy tax-free benefits.
According to the proposal, taxpayers with incomes over €60 thousand will not benefit.
The bill, which is signed by DISY MPs Harris Georgiou, Onoufrios Koullas, Savvia Orfanidou, and Marios Mavrides, and co-signed by DIPA MP Alekos Tryfonides, EDEK MP Elias Myrianthous, Ecologist MP Stavros Papadouris, and ELAM MP Sotiris Ioannou, will be tabled at today’s House plenary session, aiming for a swift discussion in the Parliamentary Committee on Finance.
At the same time, efforts are being made for MPs from other parties to also sign the proposal, so that it gains the necessary majority.
The proposed formula provides for the joint calculation of the taxable incomes of spouses or cohabiting partners.
The aim is to amend the Income Tax Law, so that spouses or partners may choose, under certain conditions, to transfer the unused tax-free income to the spouse or partner for each tax year.
The unused tax-free income is the remaining difference between the tax-free income and the total income received by the taxpayer during the tax year in which the transfer is requested.
If the proposal is approved, the measure will be implemented from the 2024 tax year onwards, so that the unused taxable income of one spouse can be added to the tax-free amount of the other spouse/partner.
For example, if one spouse has a taxable income of €10 thousand and the other has an annual income of €40 thousand, under the current tax system, the second spouse would pay €4,885 in taxes.
With the new formula proposed, the €10 thousand would be added to the €40 thousand, and the tax to be paid by this family would be approximately €2,935.
Today, if both spouses have taxable incomes of €25 thousand each, they pay €1,100 each, that is a total tax of €2,200; with DISY’s proposal, the tax burden would remain at the same level.
It is worth noting that the total amount of tax to be paid annually by the family after the transfer is made will be calculated based on the current progressive scale.
The right to transfer the unused tax-free income for the purposes of calculating the tax payable can be exercised if the taxable income of the benefiting spouse/partner does not exceed €60 thousand during the tax year.
