February 23, 2010 at 04:35 · Filed under News
The largest private and public sector unions in Greece plan a 24-hour nationwide strike for Wednesday, February 24, canceling all flights to/from/within Greece, bringing the majority of public transport to a halt and closing airports, banks, archaeological sites and museums.
Representing half of Greece’s 5 million work force, private sector union GSEE, communists workers group PAME and public sector union ADEDY are protesting austerity measures that impose tax increases, raise the retirement age and reduce salaries, pensions and benefits. Workers also have a long list of demands that include wage increases, job security and access to free, upgraded health care services.
Nationwide strikes in Greece made headlines on February 10 when the much-hyped 24-hour strike by ADEDY attempted to challenge government authority and “cripple or paralyze” the country. With many sharing the sentiment, “What good does it do to strike when it just means the government gets to keep my pay?,” only 5,000 of one million public sector employees protested in the rainy streets of Athens and Thessaloniki (The Nation).
Farmers ended their month-long blockade on February 16, the same day custom officials began a three-day strike and tax officials canceled walkout for February 17. Custom officials renewed strikes Friday February 19 when taxi drivers and fuel tankers staged a 24-hour protest, but the three rolling, 48-hour strikes intended to last through Wednesday fizzled when workers returned to work even before a court ruled their action illegal.
In a weekend poll by Greek newspaper Ethnos, 57.6 percent of Greeks consider belt-tightening to be going in the right direction, 74.2 percent think the government was too slow to react and 75.8 percent say they oppose strikes during a crisis.
What services are affected?
– All airports closed between 00:00-23:59, all flights canceled: Passengers should have received notification. Anyone who did not should call their airline or travel agent now.
– No ships, some ferry services affected
– No OSE national train service
– No Athens trolleys, no Athens metro (blue/red lines), no Athens tram service: See public transport options below.
– No Proastiakos (suburban railway services): See public transport options below.
– Public utilities will be affected: No specific disruptions announced, but residents and businesses may be subject to rolling strikes, i.e., no electricity, no water, no phone or Internet service.
– Hospitals staffed with emergency personnel only
– All Greek public sector offices, courthouses closed: No transactions or hearings.
– All museums and archaeological sites closed: Tourists should plan visit for Tuesday or wait until Thursday.
– Teachers on strike: Schools closed, though some children have a half day. It’s Greece, it depends.
– Banks in Greece closed
– Greek media blackout: No news broadcasts, no newspapers
– Lawyers in Thessaloniki on strike.
There will also be two scheduled protests in the center of Athens, one at 11:00 in Pedion Areos and another at 12:00 in Omonia Square, which means streets will be closed to traffic.
Public transport options — Partial strikes
– Athens metro, green line (ISAP) will only run between 10:00-16:00
– Buses in Athens (ETHEL) will operate between 7:30-22:00 (best option): They are only striking from 5:00-7:30 and 22:00 to end of shift.
– Buses in Thessaloniki (OASTH) will be on strike between 6:00-20:00: In another words, bus service is only available 4:30-6:00 and 20:00-23:30
– KTEL long-distance buses in Greece made no announcement: Travelers are advised to call in advance.
Olympic Air and Aegean Airlines announce flight cancellations & changes
If you have a flight with Olympic Air or Aegean Airlines, please note that all flights for February 24 are canceled. Anyone with a flight on February 23 may have an altered schedule and is advised to follow the links provided. Both announcements are in English this time and contain contact information.
Olympic Air
Flight changes for February 23: OA 147/148, 207/208, 245/246, 266, 463/464, 520/521, 718/719, 918, see “Olympic Air Press Release 22.02.2010.”
Aegean Airlines
Flight changes for February 23: A3 137, 136, 606/607, see “Aegean Airlines Press Release 22.02.2010.”
Sources
“Δελτίο Τύπου – 24ωρη Γενική Απεργία στις 24-2-2010 ” — ΓΣΕΕ
“ΑΝΑΚΟΙΝΩΣΗ ΑΠΕΡΓΙΑΣ 24 ΦΛΕΒΑΡΗ” – ΠΑΜΕ
“Απεργία 24 Φεβρουαρίου 2010” — ΑΔΕΔΥ
“Τι αλλάζει στις συγκοινωνίες την Τετάρτη” — Ta Nea
“Πανεργατική απεργία την Τετάρτη” — Eleftherotypia
“Flight cancellations and changes on February 24, 2010” — Olympic Air
“ΟΑΣΘ: Χωρίς λεωφορεία από τις 06:00 εως τις 20:00 την Τετάρτη” — Agelioforos.gr
“Με σοβαρά προβλήματα οι μεταφορές την Τετάρτη” — Kathimerini
“Nea” — OASA.gr
“«Έμφραγμα» στις μετακινήσεις λόγω της απεργίας” — Ta Nea
“Διαδήλωση – γκάλοπ απέναντι στην ισοπέδωση” — Eleftherotypia
“Teachers on strike February 24” — Eleftherotypia
“Greece to discuss austerity with EU, IMF” — WSJ
“Greeks say belt tightening in right direction- poll” — Reuters
“Greek farmers end blockade in government victory” – Reuters
“Greek customs officials extend strike” — AP
“Fuel deliveries may resume as strike wanes” — Kathimerini
“Customs strike in Greece ruled illegal” — Business Week
“Greek taxis halted” — Reuters
Related posts
“Three-day tourist ticket grants unlimited transport in Athens”
“All flights canceled due to nationwide strike in Greece”
“Aegean Airlines and Olympic Air announce merger” — CTV
Image capture from pamehellas.gr
http://bit.ly/GRFeb24
February 12, 2010 at 08:00 · Filed under DOY (Eforia) - Taxes
The Greek Ministry of Finance announced changes to the tax system in February 2010, which affect approximately 8.5 million taxpayers and apply to both salaried and self-employed workers.
Please be aware that this is a brief overview of income brackets, tax burden and collecting receipts. A comprehensive explanation of taxes in Greece and all changes to everything is impossible to accomplish in one article, especially since laws change often and many times contain loopholes.
Specific questions should be directed to a trustworthy, competent accountant. I cannot stress this enough.
*Article last updated July 15, 2010.
How much income tax will I pay?
There are eight nine basic tax brackets, determined by annual income:
► €0–12,000: 0%
► €12,001–€16,000: 18%
► €16,001–€22,000: 24%
► €22,001–€26,000: 26%
► €26,001–€32,000: 32%
► €32,001–€40,000: 36%
► €40,001–€60,000: 38%
► €60,001–€100,000: 40%
► More than €100,000: 45%
Each child increases the tax-free threshold: One child, €1,500; two children, €3,000; three children, €11,500; each child over three children, €2,000 each.
Two-career married couples calculate their tax liability separately, not as a combined total.
How many receipts will I need?
In an effort to reduce tax evasion and a black economy estimated at 30% GDP, the Greek government now demands that taxpayers submit evidence of their expenses from January 1, 2010. The only way to earn a tax-free status is to provide the required percentage of receipts for each portion of your income, which is calculated on a step scale not a flat rate. What do I mean by that?
First, look at the percentages for each bracket.
► Up to €6,000 — 0% – no receipts required.
► €6,000-€12,000 — 10% in receipts
► More than €12,000 — 30% in receipts
The original system applied a flat rate percentage according to your total income, so someone earning €30,000 had to provide €9,000 in receipts; this is no longer the case. The revised system uses a tiered calculation that is more fair.
To calculate the total amount of receipts according to your income, multiply the percentage corresponding to each portion of your income on a step scale. Using the same example above of €30,000, it would be:
(€12,000 x .10) for the first €12,000 + (€18,000 x .30) for the remaining €18,000, to total €30,000. So total receipts would be: 0 + €1,200 + €5,400 = €6,600.
What if I don’t have enough receipts?
Anyone who cannot provide receipts required for their tax bracket will pay an additional 10% tax or penalty on the difference. Maximum penalty cannot exceed €1,200.
For example, using the same figure above for consistency: If you earn €30,000 and need €6,600 in receipts, but only provide €3,000 in receipts and nothing for the remaining €3,600, you need to pay a 10% additional tax or penalty of €360 (€3,600 x .10).
What if I have more receipts than necessary?
You get a tax credit or bonus of 10% on the difference.*
If you earn €30,000 and need €6,600 in receipts, but provide €8,000 in receipts, which is €1,400 more than demanded, you get 10% tax credit of €140 (€1,400 x .10).
*The 10% credit has been criticized since we now pay 11-23% VAT on nearly everything except newspapers, theater and books.
What receipts should I save?
Receipts with an AFM (tax number), transaction date and amount for all consumer goods and services, such as:
Goods: Clothes, shoes, food (supermarket, bakery, sweet shops, manavis/green grocer, butcher, fishmonger), toiletries, furniture, appliances, pharmaceuticals, cosmetics, jewelry, linen, electronics, online purchases, computer/printer, office and school supplies, gifts, cigarettes, alcohol, books.
Services: Hairdresser, taxi, tolls (road, bridge), parking, restaurant, taverna, cafe, take-out/delivery, household repair (plumber, electrician, painter), entertainment (bars, clubs, cinema, museum/sites, theater, concerts), travel (hotel), auto repair, florist, gym, dance school, swim center, therapy, house cleaning, doctors, psychiatry, spa/massage, accountant, heating and cooling, driving schools, photocopying
Nearly everyone should be issuing receipts, and those who aren’t are committing tax evasion. See “VAT/FPA in Greece” to understand which rates apply to what categories and who should be issuing receipts and when.
What is not counted in this category:
– High-priced items such as boats, swimming pools, aircraft, cars, real estate;
– Tuition, insurance, property transfers, medical services, lawyer’s fees, transport tickets (plane, bus, train);
– Utilities (electric, water, home telephone, card/contract mobile phone);
– Rent.
Some of these items do not qualify as part of the 10-30% evidence necessary because they are declared on a different line of the tax form.
Why this doesn’t work 100%
Greeks send cash to support parents or minor/adult children living in Greece or abroad, though accountants rightly argue that this isn’t deductible under the old system either.
People have complained that receipts printed on thermal paper are useless, but the print doesn’t disappear unless you’re keeping them in direct sunlight, next to the stove or on top of the radiator/heater. I still have thermal receipts from 2005 that are in perfect condition.
Dozens of online businesses have set up shop selling counterfeit receipts.
Farmer’s market vendors, gas/petrol stations, kiosk (periptera) owners and taxi drivers are all required by law to issue receipts. See “VAT in Greece.”
How much more am I paying compared to 2009?
Ta Nea has tables found here, and Eleftherotypia has a calculator in Greek found here, but they don’t take into account the many variables.
First-home buyers
Tax exemption for first-time homeowners is no longer calculated according to square meters but objective value:
– Single: Up to €200,000 objective value
– Married: Up to €250,000 objective value
– Each child: Additional €25,000
Other exemptions still apply but…
All exemptions were revoked, except those for taxpayers who are part of large families or have physical disabilities. But all exemptions are calculated by taking declared income into consideration.
Elimination of separate taxation
A lower tax threshold of €10,500 no longer applies to self-employed or independent workers. All income tax brackets apply to all workers.
Thousands of Greek taxpayers were previously placed in different categories of taxation according to profession or type of income. The government changed this. Those affected are: Architects, engineers, taxi drivers, farmers, farmers’ market (laiki) vendors, shipbuilders and truck drivers, plus those deriving income from horse races, severance pay, and rental accommodation and campsites. Banking, insurance, broadcasting and mail services as well as professions such as lawyers, notaries, writers, artists and journalists are likely to enter VAT-paying status from 2011, since exemptions were gained through protest and not social justice.
Income from bank interest, CDs and bonds in Greece will continue to be taxed separately at 10%, irrespective of the taxpayer’s nationality and place of residence.
Sources
“Οι αλλαγές στο φορολογικό σύστημα” — Eleftherotypia
“Αρχίζει το κυνήγι των αποδείξεων” — Eleftherotypia
“Αφορολόγητο με αποδείξεις 30%” — Ta Nea
“Αφορολόγητο αποδείξεων έως 12.000 – μετά μόνον μπόνους 10% ώς τα 15.000 €” — Eleftherotypia
“Κερδισμένοι και χαμένοι από την κατάργηση της αυτοτελούς φορολόγησης” — Eleftherotypia
“Ξαναζυγίζουν το «βαρύ» 30% αποδείξεις επί του εισοδήματος” — Eleftherotypia
“16 απαντήσεις για αποδείξεις, παρακράτηση, τεκμήρια” — Ta Nea
“Οι 5 «ζεματισμένοι» του νέου φορολογικού” — Eleftherotypia
“Νέα φορολογική κλίμακα για όλα τα εισοδήματα” — Kathimerini
“Taxpayers in Greece need fewer receipts” — Kathimerini
“Αυξήσεις στον ΦΠΑ, «ψαλίδι» σε δώρα και επιδόματα” — Eleftherotypia
“Αποδείξεις χωρίς ταλαιπωρία” — Ta Nea
“Σαφάρι αποδείξεων και ΦΠΑ παντού” — Ta Nea
“Κόκκινη γραμμή στα 40.000 ευρώ” — Ta Nea
In the News
“No tax please, we’re Greek” — BBC
“Crisis-hit Greeks scramble for receipts” — Reuters
“Ever-changing Greek tax system a factor in crisis” — Boston.com
“Highlights: Greek finance minister unveils tax reform, wage policy” — Reuters
“Tax and spending policy ready” — eKathimerini
“First task of Hercules: Persuade Greeks to be honest about their taxes” — The Economist
Related posts
“Who must file taxes in Greece?”
“List of DOY/Eforia Tax Offices in Greece”
Image capture from Ta Nea
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