April 24, 2024

Athens News

News in English from Greece

2021 Tax Return: Changing Regulations Affecting All

The Ministry of Finance is preparing to announce a new tax package in the coming days, in connection with the filing of income tax returns for 2020.

This is a process that requires many changes compared to previous years, since the pandemic has led not only to a reduction in income, private consumption, but also to citizens receiving state emergency compensations that are not taxed.

Taxation will also be revised:

living expenses; threshold of electronic receipts; accounting of state subsidies for rent.

According to the information, the TAXIS system is expected to start accepting returns after Easter, with most of the data automatically pre-entered in the appropriate tax return codes, for example, a surcharge of 534 euros, compensation for “cut” rent and advances due.

The finance staff are planning to pay income tax this year in eight monthly installments.

Thousands of workers who were suspended from work in 2020 are expected to report lower income, as a result of which they risk being taxed based on their imputed income rather than real income.

In addition, the possibility of full tax exemptions for those affected by the pandemic is being considered (for more information, contact your accountant).

With regard to the provision of electronic receipts, it turned out that thousands of taxpayers were unable to cover 30% of their income last year with plastic money, mainly due to reduced consumption and the closure of the market.

In this context, the possibility of exempting certain categories of citizens from an additional tax collection of 22% levied on the difference between the electronic payments that he was obliged to make and those that he collected is being considered.

At the same time, the possibility of an extraordinary reduction in the rate of tax-free coverage for other taxpayers from 30% established by law to 20% and below is being considered.

Unpaid rent for thousands of owners turned into a headache. The Ministry of Finance is studying a scenario of full exemption from income tax on unpaid rent, so that landlords do not fall into the tax trap.

However, tax experts estimate that tax returns this year will generally reduce the tax burden for thousands of taxpayers, and the number of citizens who will receive tax refunds will also increase.

Millions of private sector workers and property owners will also benefit from the elimination of the special solidarity levy on income over € 12,000. The contribution is usually paid by government employees and retirees.

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