Tax filing: 3 in 10 will pay extra taxes on earned income in 2023

Three in 10 taxpayers will pay extra money for revenues received in 2023, according to the Independent Authority for National Revenue (AADE).

At the same time, two in ten are entitled to a tax refund, and almost half of taxpayers (49%) have zero tax.

What the AADE data showed

According to AADE data from 3,992,967 tax returns:

• In 29.65% of tax returns, corresponding to 1,183,914 tax returns, taxpayers must pay 1,250 euros.
• In 21.59%, which corresponds to 862,081 tax returns, an average refund of 286 euros is provided.
• In 48.76%, which corresponds to 1,946,970 declarations, the tax refund is zero.

At the moment, around 4 million taxpayers and companies have filed tax returns. However, at the moment the ratio is such that 3 out of 10 taxpayers will have to pay additional tax due to imputed income. In particular, more than 430,000 freelancers and self-employed people will have to pay an additional 1,440 euros on average.

Payment in installments or one-time payment

Income tax can be paid in 8 installments. The first of these expires on July 31, 2024, and the last one in February 2025. Those who pay the tax in one lump sum before July 31, 2024, will receive a 3% discount. Otherwise, there is an option to split the income tax debt into 24 monthly payments, on which interest is charged.

What happened to automatic filing of income tax returns

Automatic declarations were preferred by 422,878 taxpayers and it turned out that:

• 132,222 taxpayers will receive a tax refund, with an average amount of €128.
• 237,434 taxpayers will pay zero tax.
• 109,699 taxpayers will pay around 402 euros.

8,036 taxpayers whose tax data has changed and is not subject to pre-filling have been informed, and the same will be done in the coming days for 6,930 people. Taxpayers who have received such messages must submit their tax returns by July 26, 2024.

According to the imputed income criterion, 93,204 taxpayers and 5,093 spouses and common-law spouses paid the tax. Taxpayers can file a corrected return without penalty until July 26, 2024.

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