For working pensioners, Law 5073/2023, which introduced presumptive income, provides that the presumptive income on which they will be taxed for self-employment is reduced by the amount of the pension they receive.
In practice, imputed income is zeroed out by the pension and so self-employed or self-employed pensioners will not be subject to imputed income tax, but only taxed on the pension income.
The effect of this exemption is that the thousands of pensioners who, following the new law on the employment of pensioners, can work without having their pension cut by 30%, have an additional benefit if they are self-employed or self-employed, as they avoid tax on imputed income .
According to information from “ET”, of the pensioners who declared that they are employed, almost 42,000 belong to the self-employed category, as they are self-employed.
The 42,000 pensioners who work as professionals, paying the self-employed contributions, are exempt from presumptive income taxation and will not be burdened with additional self-employment tax.
For example, a pensioner who receives 1,100 euros gross from a pension and at the same time practices an individual profession (e.g. accountant, doctor, professional, etc.) would be taxed for practicing the profession with a presumptive income of no less than 11,620 euros. However, since the law provides that the presumptive income is reduced by the amount of the pension, it follows that the pensioner has zero presumption of taxation, as his pension amounts to 13,200 euros per year.
The exemption from presumptive taxation also covers pensioners with pensions below 1,000 euros, as when they are deducted from the presumptive income, no tax arises.
The relevant provision of the law on the amounts that reduce the presumptive taxable income of self-employed persons states that for taxpayers who obtain income from salaried work or from a pension or from agricultural business activity, the minimum taxation is reduced by an amount corresponding to the income they obtain from salaried work, pension or agricultural activity.
The exemption from the presumption of taxation applies to all pensioners who continue to be employed following retirement as freelancers or self-employed, regardless of any other favorable provisions of the law on the employment of pensioners.
For example, retired farmers who continue following retirement in the same occupation are exempted from the payment of contribution, from the special reservation of working pensioners, but also from imputed taxation. The same applies to pensioners with disabilities and to those with many children with exemption from deductions (exemption from the special employed pensioner resource) and exemption from presumptive taxation, as long as they are employed as freelancers.
IT DOES NOT CONCERN THE TENANTS
On the contrary, retirees who continue to be employed as employees do not have any exemption beyond what is provided for in the Income Tax Code.
In these cases the income from the pension and from work are added together and taxed based on the income tax scale.
However, in cases of parallel employment of pensioners in salaried work and self-employment, the exemption from presumptive taxable income for the exercise of self-employment applies.
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