AAA: Clarification of the solidarity levy - Who are excluded

Clarification of the earnings to which the solidarity levy is imposed gives a circular of the AAD governor, Giorgos Pitsilis, following queries submitted by taxpayers.

It is recalled in the circular that the solidarity levy is levied on the income of over EUR 12,000 of natural persons or of inheritance.

For the purposes of levying the levy, account shall be taken of the total income, as derived from the sum of income from paid employment and pensions, from business activity, from capital, from capital gains, taxable or exempt, actual or imputed.

In the income from salaried services acquired by the monthly salaried pensioners, pensioners from primary insurance institutions, wage-earners who provide services with a tenancy relationship for more than one year to the same employer or an employment relationship for an indefinite period, officers and the lower crew of the merchant navy who provide services on merchant ships and with the exception of the income of wholly blind persons and persons with severe motor disabilities in a percentage of 80% or more, a deduction is made by employers or by the institutions paying primary pensions against the special solidarity levy.

The exceptions

The Independent Public Revenue Authority specifies in which cases the solidarity levy is not withheld. Analytically:

No deduction is made against the special solidarity levy referred to in Article 29 of Law 3986/2011 on the net remuneration for overtime work, grants, allowances and any other kind of additional remuneration or benefits paid regularly or exceptionally and not associated with regular salary; and for which a 20% deduction is fixed .

With regard to the withholding tax on income from paid employment and pensions, it was clarified that the concept of monthly net income includes the salary or pension and any other remuneration of the same period (eg allowances), paid regularly and collates (ie together, in the same payroll as the salary.

The same circular also stated that in the net remuneration for overtime work, grants, allowances, and any other kind of additional remuneration or lump-sum benefits not included in regular salary the withholding tax is calculated at a rate of 20% on the amount paid of the above fees, in accordance with the provisions of paragraph 5 of Article 60 of Law 4772/20.

Following the incorporation of the provisions of article 29 of Law 3986/2011 into the provisions of Article 43A of Law 4172/2002, on the issue of withholding from the special solidarity levy on the remuneration for overtime work, allocations, bonuses and any other kind , additional fees or lump-sum payments, paid regularly or extraordinarily, other than salary, and not settled with regular remuneration, the provisions of Article 43A of Law 4772/20 shall continue to apply Circular POL1010 / 25.1.20 13.

Consequently, no remuneration is levied against the special solidarity levy , but the special solidarity levy is levied on those incomes by submitting the annual income tax statement of the payee.