During the presentation, Kostis Hatzidakis defended a well-balanced regulation aimed at transparency in the taxation of tips and the prevention of unfair practices by employers of the new tax law.
The bonuses received by salaried workers in places of health interest will be are exempt from income tax up to the value from 300 euros per month. They will not be exempt in full from insurance contribution deductions.
Penalty for employers
If it turns out that the employee’s regular earnings have been reduced while their additional earnings (i.e. tips) have been increased, the employer will be required to pay a contribution equal to 22% of the reduction in regular earnings.
Hatzidakis was asked if he had calculated the political cost of the decision and if after the fight with the taxi drivers he intended to open a new one with the waiters.
“You will appreciate the work of the government and, of course, the citizens. There was a great risk that workers would be taxed from the first euro of tips. We deal with this in two ways: establishing a tax exemption limit and a total tax exemption for insurance contributions”, replied the Minister of Economy and Finance.