Greece’s Ministry of National Economy and Finance widens eligibility for presumptive income relief, ENFIA phase-out and EUR 130 border-area allowance

Greece’s Ministry of National Economy and Finance announced in parliament three drafting amendments to a tax reform bill that expand eligibility for a 50% reduction in the minimum net income amount used for business activity assessments, extend the phased abolition of ENFIA, and broaden access to a EUR 130 monthly border-area allowance. The 50% reduction is extended to taxpayers whose business activity and primary residence are in municipal communities or settlements with populations from 500 to 1,700 in the Western Macedonia Region, the Evros Regional Unit, and border municipalities in the Central Macedonia, Eastern Macedonia and Thrace, and Epirus regions, compared with a population threshold of 1,500 for the rest of the country. The ENFIA phase-out is also extended to individuals whose primary residence is in settlements with up to 1,700 residents in the same areas beyond Evros. The EUR 130 allowance is expanded to Hellenic Coast Guard personnel serving in the port authorities of Maroneia and Fanari in Rhodope and Porto Lagos, and to Fire Service personnel serving in units close to the land borders in Epirus, Macedonia and Thrace. In the same debate, the minister presented dividend-tax figures to support the 5% rate, citing declared dividend income of EUR 1.73bn with corresponding tax of EUR 173m when the rate was 10%, EUR 5.76bn with corresponding tax of EUR 288m after the cut to 5%, and a most recent declared income figure of EUR 7.7bn with corresponding tax of EUR 386m. The changes are included in the bill currently before parliament.