Corporate expenses under strict monitoring

The Finance Ministry and the tax administration are looking for solutions so that professionals stop hiding their actual incomes – i.e. taxable material – through fictitious expenses. 

A senior official at the ministry pointed out that “only if the declared income of the self-employed increases will we proceed with the abolition of the fee for practicing a profession,” referring to the so-called “telos epitidevmatos.” 

He also noted that the expenses many professionals declare shrink the net profits to the levels of the minimum tax rate, with the aim of paying as little as possible to the tax office. From the discussions that have begun, it appears that there will be no change to the way the professionals’ income and declared profits are taxed. 

“However, what will change is their monitoring, but also the criteria for the recognition of expenses,” ministry officials said. Several ideas are being discussed, while a study by the Foundation for Economic and Industrial Research (IOBE) is expected soon with proposals and measures that have been adopted by other European countries.