Tax

“Gradual, yet fiscally sustainable tax reductions remain our central choice,” emphasized Prime Minister Kyriakos Mitsotakis in his weekly review published on Facebook.

According to Mr. Mitsotakis, tax reductions are made possible due to increased state revenues and the reduction of debt, as well as the decrease in tax evasion.

According to Eurostat data, Bulgaria's tax-to-GDP ratio is among the lowest in the European Union. In 2023, the overall tax-to-GDP ratio for the EU, which includes the sum of taxes and net social contributions as a percentage of gross domestic product (GDP), was recorded at 40.0%. This figure represents a decrease from 40.7% in 2022.

The political establishment had at first appeared allergic to the idea of an independent agency tasked with detecting tax evasion and collecting public revenue. 

The government is launching a new round of tax cuts with a focus on direct income taxes. The signal was set by the prime minister and the minister of the national economy at the inauguration of the new AADE facilities, stressing that tax revenues will allow for new tax cuts.

Prime Minister Kyriakos Mitsotakis announced forthcoming tax cuts as Greece's economy stabilizes, with an eye on reducing VAT and income tax rates by the end of his term in 2027. 

The government's announcement of a "compassionate" tax break of up to 300 euros a month on tips earned via card payments was not met without complaints, as groups of workers doing equally hard and poorly paid jobs as waitstaff and delivery drivers also want to be included.

Even if a Greek is just having a quick coffee, they'll usually leave a few coins next to the cup. Especially if it's a regular spot where they know the server by name, they'd feel uncomfortable leaving without tipping. Until recently, most customer tips - usually in cash - would be pooled together and shared among the servers at the end of the shift.

Retail trade stands as the second largest employer in Bulgaria, ranking among the top three sectors with the highest number of job vacancies currently available. According to national statistics, the sector contributed 8% to the gross domestic product last year, and its companies are significant contributors to the country's tax revenues.

Taxpayers whose presumed income is higher than their actual income have two months to find ways to avoid paying additional tax. Taxpayers can claim income, loans received, lump sums, compensation, and gambling winnings to avoid the presumption.

Strong revenue growth, mainly stemming from social security contributions and corporate income tax, have been the main driver of Cyprus' strong fiscal outcomes, which have "improved markedly in recent years," international ratings agency Morningstar DBRS has said.