Law amendments 2014

As from January 2014 there are three major amendments to Social Insurance, Special Contribution Tax and VAT Law. More detailed the changes for each government sector are as below:

Social Insurance

As of 1stof January 2014 the rates of Social Insurance for employees, employers and self-employees are increasing.
For employees and employers the rate of Social Insurance contributions is increasing by 2% and from 13.6% that was contributed from both parties equally until December 2013 (6.8% deducted from employee and 6.8% contributed from employer) the rate is modified to 15.6% (7.8% deducted from employee and 7.8% contributed from employer). The new rate is applicable until December 2018.
Furthermore the Social Insurance rate for Self-Employees is increasing by 2%, and from 12.6% that was contributed until December 2013, is modified to 14.6% from 1stof January 2014 until December 2018.
In addition from January 2014 the retirement age limit increases by 6 months and its determined to the 64thyear, with the option of early retirement. The impact of the early retirement will be the proportional reduction of the pension that own the insured person at 0,5% for each month of early retirement.

 

Special Contribution Tax
As from January 2014 the untaxable monthly gross salary amount of Special Contribution is decreasing. More precisely until December 2013 the untaxable monthly gross salary was €2500 and the Special Contribution was applicable from €2501. As from 1stof January 2014 the untaxable monthly gross salary is determine to €1500, and the Special Contribution is applicable from €1501.
Below are the relevant rates of Special Contribution until December 2013, and also the rates that are going to be applied from 1stof January 2014 up until 31stof December 2016. Please note that the Special Contribution Tax that arises is divided by two, the employer pays the one part and the other part is deducted from employee’s salary. The minimum amount of Special Contribution is €10.

Special Contribution
2012-2013 2014-2016
Monthly Salary or Pension % of SpecialContribution Monthly Salary or Pension % of SpecialContribution
€0-€2,500 0% €0-€1,500 0%
€2,501-€3,500 2,5% €1,501-€2,500 2,5%
€3,501-€4,500 3,0% €2,501-€3,500 3,0%
€4,501- 3,5% €3,501– 3,5%

VAT

From 13thof January 2014 the standard vat rate is increasing from 18% to 19% and the reduced rate from 8% to 9% for the supply of goods and services.

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