The Parliamentary Finance Committee will resume discussions on a proposed law regarding unused tax-free income early next year. The proposal, which was deliberated during Monday’s committee session, allows spouses or partners, under specific conditions, to transfer their unused tax-free allowance to each other for tax calculation purposes. If passed, the law will take effect starting from the 2024 tax year.

The proposal, submitted by MPs Harris Georgiades, Onoufrios Koullas, Savia Orphanidou, Marios Mavridis, Sotiris Ioannou, Stavros Papadouris, Elias Myrianthous, and Alekos Tryfonides, aims to address inequities in the current tax framework by granting couples more flexibility in managing their tax obligations.

Speaking after the session, DISY MP Savia Orphanidou stated:

“According to the Ministry of Finance, our proposal has been submitted for evaluation to the team responsible for studying the tax reform.” She further explained, “The Finance Committee decided to continue discussions early next year, once we have clear guidelines on the tax reform from the government itself.”

In response to questions, Orphanidou clarified that the proposal includes a maximum limit of €60,000 for the transferred allowance. However, she emphasized, “As discussed in the session, we are open to accepting changes that align with improving the proposal.”

She also noted that the current legislation creates injustices, providing numerical examples to illustrate the issue.