77% of national revenue is wages

There’s no money…

 

Nearly 4 in 5 companies operating in the country have concluded 2009 with losses. Based on what was reported to tax authorities, all commercial enterprises, banks and industries of the country shared profits at 10,3 billion euros. Farmers only cleared 1,6 billion and freelancers 4.

Of the 100 billion reported as net income in 2010 by those who are taxed in the country, 76,7 billion consisted of salaries and pensions. The data released by the General Secretariat of Information Systems covering last year's reported earnings is revealing of the extent of fraud in our country.

Employees and pensioners continue being the permanent tax beasts of burden, as they paid 55,54% of total income tax revenues in 2009, compared to 52,59% for 2008.

In contrast the other taxpayers, including professionals, retirees, traders, farmers and merchant-craftsmen, paid 15,79% of total tax revenue to the state, compared to 16,62% for 2008. Businesses contributed at a rate of 28,67%, against 30,79% in 2008, to state revenues from income tax.

One in two taxpayers appears to have declared an income below the taxable limit, which was then 12.000 euros, while seven out of ten freelancers did not pay tax - 4520 - as they declared incomes below the tax-free limit.