Tax Returns: Key Steps to Resolving Tax Returns "imputed income"

Last year, more than 1.5 million taxpayers fell into the imputed income trap, resulting in more than €5.5 billion in taxes. However, this year they have the option to take a number of steps before filing a new tax return.

Imputed income or in Greek τεκμηρίων – This specific amounts of living expenses that objectively determine the minimum amount of taxable income for each individual person.

System for determining taxable income (τεκμηρίων) based on estimated living expenses, provides a minimum annual living expenses of EUR 3,000 for each single taxpayer and EUR 5,000 for married or cohabiting taxpayer couples – EUR 2,500 for each spouse or live-in partner.

To these amounts are added specific living expenses that correspond to the annual expenses for the use and maintenance of homes, personal automobiles, pleasure boats, swimming pools, and airplanes, as well as the actual costs of private education and staff salaries.

In other words fixing your expenses (tax traces of your financial transactions for the receipt and expenditure of non-cash or cash funds if you documented these expenses), knowing what kind of property you have, the state, based on statistical data (and the tax official’s own understanding), charges you the appropriate tax. With this not taken into account what could you have left? income from previous years.

The main steps to overcome the problem of imputed income and the time for their implementation are as follows:

• Link to income from previous financial years. This is “use of income from previous years” with which he can cover any additional difference in taxable income resulting from the application imputed income, referring to income declared even 10-20 years ago, if, of course, they were declared to the tax authorities.
  To do this, you need to add up all income from wages, pensions, benefits, rent, business activities, interest on deposits, dividends, capital gains (for example, shares), etc., the amount of income from the sale of property or other income such as lump sums payments from insurance funds, lottery winnings, donations.
  From the resulting total, subtract amounts reported on the same tax returns as estimated living expenses (for houses, personal cars, swimming pools, boats, servants, etc.), as well as amounts reported on the same returns as spent on acquisition of assets (real estate, personal cars, boats, high-value movable property, etc.).
• Receiving donations or parental benefits, especially this year when the tax-free amount has been increased to 800,000 euros. However, the parent's donation or gift must be made during 2023. In addition, to be recognized, cash donations must be made through banks and declared to the tax authorities.
• Loans received by the taxpayer during 2023 from banks, relatives or third parties. Receipt of a loan is confirmed by a notarized or private document with a seal and a specific date for the conclusion of the loan.
• Income received by the taxpayer in 2023 from the sale of assets. Income from the sale of assets is recognized as the amount received by the taxpayer from the sale of real estate, cars, movable property of high value, etc.
• Actual income received in 2023 by the taxpayer himself, his spouse and dependents that are exempt from taxation or subject to special taxation. Such income includes compensation for dismissal from work, unemployment benefits, profits from stocks and mutual funds, interest on repurchase agreements, treasury bills and bonds of the Greek state, interest on bank deposits, risk premiums, etc.
• sums of money not treated as income under existing provisions and acquired by the taxpayer, such as a lump sum received by the taxpayer as a pensioner, compensation received from his insurance company, etc.
• Amounts of money brought into Greece by the taxpayer in 2023, either in euros or in foreign currency, if their acquisition abroad is justified.
• Winnings from lotteries, ΠPOΠO, ΛOTTO, TZΟKEP, Προκαθορισμένο Στοίχημα and other OPAP gambling To prove receipt of winnings from a gambling or OPAP lottery, the taxpayer must have an appropriate certificate from OPAP or from the lottery company.

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