Tax Updates: February 18th 2025
Consistent with our commitment to provide updated information on current tax issues
Consistent with our commitment to provide updated information on current tax issues
Article Posted date
18 February 2025
1 min read
Changes in the calculation of the maximum amount of contributions and insurance premiums paid to Professional Insurance Funds (TEA) and Group Insurance Pension Plans
The recent law 5178/2025 (Government Gazette Α' 22/14.02.2025) modifies the basis for calculation of the maximum limit of contributions and insurance premiums that can be paid by employers and employees to TEA and Group Insurance Pension Plans.
Specifically, Article 35 of the above law aims to clarify the basis for calculating the maximum amount of contributions and insurance premiums in order to finally resolve the issue “by broadening the basis for the calculation, to the benefit of the employees and in a way that shall not give rise to any disputes (according to the Explanatory Report of the new Law).
In this context, the new law refers to the basis for calculating the maximum amount of contributions and insurance premiums as the sum of total gross remuneration from employment plus all benefits in kind of Article 13 of the Greek Income Tax Code, that are included in the taxable income from employment.
The above provisions apply to contributions and insurance premiums paid from tax year 2024 onwards.
Exclusion of insurance premiums for the medical coverage of the employee’s spouse and children from the employee’s taxable employment income
The new law has introduced one more tax amendment that is beneficial for the employees. In particular, the exemption from taxation up to the amount of EUR 1 500 annually per employee is extended to contributions and insurance premiums paid for the medical coverage of the employee's spouse and children.
The above provisions apply to contributions and insurance premiums paid from tax year 2024 onwards.
