2019 Tax Returns: All Changes – View from when they start

Earlier than any other time, it starts counting the tax returns for 6.2 million taxpayers. The kick-off for the annual meeting with the tax office was yesterday by the head of the Independent Public Revenue Authority, Giorgos Pitsillis, with the issue of the new income tax forms.

The changes that are being made are minimal.However, there is a significant innovation compared to previous years. This is the individual wage note that spouses will receive regardless of whether they will choose to file a joint or separate tax return.

The new E1 form has no substantial differences compared to last year, while nothing changes in the way income tax is paid.

According to the circular, taxpayers with a debit note will pay the tax in three equal bimonthly installments, the first to July 31, the second to September 30, and the third to the 29 November.

The Taxis online portal for tax returns is expected to open in March and taxpayers will have a margin until the end of June to meet their annual tax liability.

The main points that make up the canvas of this year’s tax returns

  • A joint tax return, two clearing notes. From this year every husband will have his own paychecker. A separate tax return is made to the joint tax return by the spouses and two statements are issued. One for each husband. Credit amounts of one spouse are not offset against any debts of the other, and if they are both reimbursed to each beneficiary separately. For example, a couple submits a joint tax return and for the spouse a tax payment of 500 euros is made, while for the spouse a tax refund of 200 euros. The two amounts will not be offset. The spouse will pay the tax and the spouse will receive the tax refund irrespective of the husband’s debt.
  • Couples with a separate statement: Spouses can submit a separate statement. In this case, they will have to notify this option to an electronic application that is already in operation at the Taxis system by 28 February at the latest. Table 1 of Form E1 on taxable persons has added a new field for separate spouse declaration. Those who choose the “tax divorce” should click on the YES and fill in the spouse’s VAT number.
  • Separate statements without Taxis notification. The spouses submit a separate tax return, without requiring notification to the specific electronic application, each for his or her income if the marriage is interrupted at the time the application is filed, or one of the two spouses is bankrupt or has been subjected to guardianship. The burden of proof of interruption is borne by the taxpayer. A prerequisite is the updating of the DOI Registry.
  • Cohabitation agreement : Natural persons having a cohabitation agreement may, when they inform the Registry, file a joint statement of their income. In this case, the same tax treatment with married and debtor is that part of the cohabitation agreement which, when submitting the income tax return, is also declared as liable for the income of the other party to the cohabitation agreement.
  • Foreign residents: If a tax resident of Greece transfers his residence abroad, the declaration is submitted in time for the whole tax year and no later than 31.12.2019.
  • Statements of the deceased:   They are submitted in handwritten form to the competent tax office. until 31.12.2019. In this case, it is necessary to inform the Dean’s Administrative and Mechanical Support Department of the deceased before submitting the declaration with the date of death and the details of the legal heirs / relatives, by submitting the necessary supporting documents.
  • Minor E3 Form:   The parent’s statement with E3 of the minor child is submitted in handwritten form to the competent tax office.
  • Bankruptcy: In the event of bankruptcy, two statements are filed, a statement by the bankruptcy administrator of the proceeds from the bankruptcy estate in handwritten form to the competent tax office. and a statement from the poor about any income from non-bankruptcy electronically.
  • Reserved statements: Reserved statements are submitted electronically over the Internet and taxpayers have to submit to the tax registrar within 30 days.the necessary supporting documents.
  • Retrospectively: Amending statements for retroactive wages or pensions of previous years, unemployment benefits back, salary doctors of the NHS from afternoon surgery are subject to fines and interest until the end of the tax year in which the salary or pension statements were issued.
  • Special wages: Approximately 400,000 active and retired civil servants who are covered by special wages and received retrospective payments in December 2018 will be required to pay a solidarity levy of 2.2% -10% for these amounts.
  • Income from short-term lease of property type Airbnb: It is declared collectively per property under code 60 of column 16 of Form E2 (detailed statement for real estate rents). By selecting the code 61 in the column, all incomes obtained from the short-term sublease of real estate via digital platforms (Airbnb, Booking, etc.) will be declared collectively per property.
  • Termination fee: The number of taxpayers who are exempt from payment of a business fee is widened. The list includes farmers – members of agricultural cooperatives as well as those who have started a business but are in a state of bankruptcy or inactivity. In case the inertia does not take up the entire tax year, the trade fee is limited depending on the months of operation.
  • Student residence: Students studying away from the residence of their families and renting a student home, provided that in 2018 they have acquired any form and any income (even interest on deposits or occasional employment) will be loaded with the presumption of living of the rented dwelling at risk to pay income tax.
  • Plastic money: In codes 049-050 “Purchase and supply of goods”, the sums paid by the employees, retired and professional farmers are paid for purchases of goods and services paid in 2018 by plastic money or e-banking or e-wallet to maintain the tax reduction of € 1,900-2,100, equivalent to a tax-free amount of € 8,636-9,545. The minimum total amount of expenditure securing the tax credit is determined as a percentage of the individual – declared or imputable – taxable income as follows:
  • 10% if this income is up to € 10,000
  • 15% for income from 10,001 to 30,000 euros; and
  • 20% of the excess amount if the income exceeds € 30,000.

Taxpayers who have not paid their income with the required amount of receipts will pay an extra 22% tax on the missing amount. In any case where the imputed income, ie that resulting from the application of the presumptions of living and the acquisition of assets, is greater than the declared and the additional difference is not covered by the taxpayer, the amount of the annual expenditure for purchases of goods and services which has to be paid by electronic means of payment to secure the tax credit will be determined as a percentage of the (highest) imputed and not the (lowest) declared income.

  • AMKA: The AMKA of the debtor and his spouse or partner is obligatory. AMKA is also declared for protected children. except in cases where they are not required to acquire AMBA. It is also excluded from the listing of AMKA and taxpayers who, for reasons of sensitive personal data, do not wish to disclose the AMKA either to themselves or to their dependents, as well as the employees of the Black Sea Trade and Development Bank
  • VAT number: The VAT number is mandatory only for dependent members over the age of 18 (over 18 years old at 31-12-2018).
  • Young people aged 18 and above: Those who have reached the age of 18 until31 December 2018 and have actual or imputed income are required to submit a tax return. Adult children who can be considered as protected children are required to file a tax return when they earn real income or have imputed income.
  • Salaries – Pensions : Wages and pensions are also pre-filled this year. No correction exists. If you appear to have received unpaid incomes, the only solution is to contact your employer and ask them to adjust your earnings to actual data. If you refuse, you should make a “reservation” statement.
  • Hosted: Taxpayers hosting a relative or friend in their home will have to fill in 007-008 and write the ID of the person they host as well as the space for which they offered hospitality in 2018. Thus, it will be possible to a cross between the statement of the hosting provider and the guest.
  • Protected children – Dependent members:   Minors or adult children, as well as members of the family of the taxpayer with a disability of 67% or more, are deemed to be liable to the taxpayer if they are close to him and their annual taxable income does not exceed EUR 3,000 or the amount of € 6,000 if they have a disability of 67% or more.
  • Objects: Beware of the evidence. To avoid paying extra tax, you must cover the evidence in various ways, such as previous years’ capital consumption, proceeds from the sale of assets or parental benefits, and donations of funds for which they are proved by a notarial deed and dated 31 December 2018.
  • Residences: Property income is first reported on Form E2 and transferred to the corresponding codes in E1.
  • Impenetrable rents: Property owners to be exempt from paying income tax on rents that they did not collect in 2018 should have filed a claim against the tenant who did not pay in due time the rents due. They should visit their tax office to file a photocopy of payment orders, court orders or eviction orders.
  • Unpaid earnings: In the case of unpaid earnings , an employed person with a certificate of salary from his employer who does not result in the separation of income from unpaid earnings in the years in question may submit amended statements for the taxation of such income per year.

source- newsit.gr

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