Government preparing legislation to overhaul presumptive taxation system

The government has already started working on an overhaul to fine-tune the presumptive taxation system for the self-employed, as announced by Prime Minister Kyriakos Mitsotakis and promised by the finance ministry, aiming to complete this by the end of the year. This will allow the Independent Authority for Public Revenues to prepare its own systems and incorporate any changes in time for the income tax statements of 2025.

There is evident satisfaction with the results of presumptive taxation at the finance ministry, with revenues from freelance professionals increasing in line with projections. Based on existing scenarios, the basic system will remain unchanged and any modifications to address possible injustices that have arisen will possibly concern criteria that affect the size of the presumptive income. These include turnover, payroll costs, family income, as well as changes resulting from an increase in the minimum wage, among others.

Last year, 47% of freelance professionals paid up to 1,000 euros in taxes and 27% paid between 1,000-3,000 euros. This year, the national economy and finance ministry estimates that 17% will pay up to 1,000 euros and 54% will pay between 1,000 and 3,000 euros.