Government Incentives for Taxpayers
The government is planning to introduce new incentives for taxpayers who fulfill their tax obligations promptly. These incentives are expected to be implemented starting from 2025.
“We are considering introducing important incentives next year to reward those taxpayers who file their tax returns early and make timely payments,” stated Deputy Minister of Finance Christos Dimas.
Some of the proposed incentives include a 5% discount for individuals who make a one-time payment for their income tax, ENFIA, and social security contributions (currently only a 3% discount applies for income tax); an increase in chances to win the monthly lottery organized by the tax authority; a 50% reduction in the interest rate for future debts to the state; expedited tax refunds; and a decrease in the amount withheld for individuals with confirmed debts who are reclaiming money from the government.
These measures aim to encourage taxpayers to meet their financial obligations promptly and to facilitate the process of debt settlement with the state.
Improving Taxpayer Compliance
The Ministry of Finance has announced new measures to improve taxpayer compliance. According to the ministry, taxpayers who demonstrate a high degree of reliability will be eligible for additional bonuses and incentives. On the other hand, stricter penalties will be imposed on those who fail to comply with tax regulations.
Adjusting Withholding Rates
One of the key changes introduced by the ministry is the adjustment of withholding rates based on the number of payments made and the total amount due. Taxpayers who consistently make timely payments will benefit from lower withholding rates, while those who are delinquent in their payments may face higher rates.
