ECONOMY

Tax return filings to start mid-May

tax-return-filings-to-start-mid-may

Tax returns for income obtained in 2020 will be submitted later than usual this year. The electronic Taxisnet system is expected to open in mid-May, more than a month later than last year, according to Ministry of Finance officials.

The delay is at least partly due to the pandemic, which has led to increasing traffic on the electronic platforms of the Independent Authority for Public Revenue regarding special purpose compensation, including pre-paid tax reimbursements.

Thus, the first installment of tax payments will not take place on July 31, as was the case last year, although taxpayers will most likely be able to pay their taxes in up to eight installments again.

The delay also gives the government time to decide what to do about a number of issues, such as the reduction in pre-paid tax for those whose incomes suffered because of the pandemic, the requirement to submit receipts and the determination of income partly by applying a set of criteria, or presumptions, based on expenditure.

It appears that receipts on purchases will not be required and the presumption principle will not be applied. But the decisions are expected to be finalized by the end of March.

In any case, the ministry officials said, the foregone taxes will be in the range of 50-100 million euros, an insignificant amount compared to the extra spending on coronavirus relief.