What changes in this year’s tax returns – When does Taxisnet open?

The curtain opens in March on tax returns with most agencies already submitting the information needed to complete tax returns to the Independent Public Revenue Authority.

From the end of March, natural and legal persons will be able to start submitting declarations and those who wish will be able to gradually repay their debts despite the fact that the deadline for payment of the first installment will remain July 31, 2022.

Those companies and business accountants who have not yet sent the data, must do so by February 28 electronically. But there are also changes in the number of installments. The three bi-monthly installments provided by the current legislation for the payment of income tax resulting from the settlement of tax returns is increased to 8 monthly installments, starting as mentioned above from July 31, 2022 in order to give taxpayers breath relief in taxpayers and put a brake on the wave of unpaid taxes. It is noted that overdue debts to the tax authorities have climbed to 110 billion euros.

However, by March, when taxisnet opens, the government should have made the final decisions on the evidence and proof of those affected last year. Although none of the financial staff rules out the possibility of excluding the victims, however, they estimate that the data collected by the banks show that something is not necessary. In any case, a senior official of the Ministry of Finance says of living documents will be reviewed in February, ie before the process of submitting the new tax returns begins, and if there is a substantial reason, the necessary interventions will be made. Based on the current data, taxpayers should know the following:

1. Electronic receipts: Expenditures made with electronic payments (card, e-banking, etc.) should cover 30% of the taxpayer’s income with a maximum amount of 20,000 euros. Taxpayers who have failed to collect the required receipts under tax law will be required to pay an extra tax equal to 22% of the missing receipts. For example, if a taxpayer with an annual income of 15,000 euros made electronic payments of expenses totaling 3,000 euros, which correspond to 20% of his annual income, he will be required to pay an additional tax of 22% on his unpaid 10% of his annual income this year. ie 330 euros (22% x 10% x 15,000 euros).

2. Items: Taxpayers who will not justify the imputed expenses with their income will be taxed based on the anachronistic presumptions. The imputed expenses that threaten to increase the taxation of natural persons are the following:

– The residences: The presumption is calculated based on the square meters of the privately owned or rented or the free main concession.

– The cars: The presumption for the cars is shaped according to the cubic centimeters and starts from 4,000 euros for cars up to 1,200 cc. and scaled accordingly.

– Tuition paid for private schools and colleges.

– The cost for domestic helpers, car drivers, teachers and other staff.

– Pleasure boats. The presumption is calculated based on the measures.

– The swimming pools. The presumption is calculated based on their surface and is shaped depending on whether it is external or internal.

– Expenditures for the acquisition of assets, within 2020, such as real estate, cars, paintings and generally high value goods.

– The minimum objective cost of living, which is set at 3,000 euros for a single, divorced or widowed woman and 5,000 euros for spouses filing a joint declaration if real or imputed income is declared.

3. Solidarity contribution: The solidarity levy has been virtually abolished for taxpayers earning income from private sector hired services, real estate, dividends, business.

Tax advance: The tax advance for the next year will be calculated at a rate of 55% for the self-employed and sole proprietorships, while for businesses it has been reduced to 80%. On the contrary, the tax advance is maintained at 100% for credit institutions.

What taxpayers need to know

– Salaries – pensions: The incomes from salaries and pensions are pre-supplemented this year as well. There is no possibility of correction. If you appear to have received unpaid income, the only solution is to contact your employer and ask them to adjust your earnings to the actual data. If he refuses, you will have to make a “reservation” statement.

– Guests: Taxpayers who host a relative or friend at their home must fill in 007-008 and write the VAT number of the person they host as well as the period for which they offered hospitality in 2021. Thus, it will be possible to make a cross between the statement of the host and the guest.

– With the payment of taxes for incomes that did not acquire in 2021, the taxpayers with uncollected rents are in danger, in case they do not provide before the submission of the declaration. Landlords who rent real estate but do not receive rent can avoid paying extra taxes on income they did not receive. Before submitting the return, they will have to save their taxation with an out-of-court settlement with the tenant.