As the health crisis affects the entire economy, the government is preparing its next moves that will lead to an increase in the disposable income of enterprises and households through the suspension of taxes and the arrangement of debts created in 2020, as well as additional tranches for the payment of this year’s income tax and Single Property Tax (ENFIA).
The Finance Ministry foresees five measures that will help companies and families regain their footing when the market reopens and workers on furlough return to work. These measures are the suspension of the corporate income tax deposit, a new arrangement of debts, the suspension of the measures regarding online payments and the asset-based calculation of incomes, as well as additional installments for this year’s tax payment, similar to last year’s.
1) Online payments: The rule for at least 30% of one’s incomes being spent through credit and debit cards or internet payments will not apply for 2020 incomes, as despite the rise of online commerce many social groups could not spend as much as they used to.
2) Tekmiria: The government is considering the review of the asset-based calculation of incomes, known in Greek as “tekmiria,” as the crisis has made incomes shrink and thousands of taxpayers would be at risk of being taxed on nonexistent revenues. The suspension of the method will be partial or total for 2020 incomes.
3) Tax deposit: The Finance Ministry is considering a reduction of corporate income tax deposits, but in a more targeted fashion than last year. Most companies will show losses this year anyway, so the cost of such a measure was always going to be quite limited.
4) Past debts to the state: Any dues to the tax authorities and social security funds that have been suspended since the first lockdown, last spring, will be incorporated into the extraordinary debt arrangement to begin in 2022. This will be in 24 interest-free tranches or in 48 installments with an interest rate of 2.5%.
5) 2021 taxes: The ministry is set to extend the number of tranches for this year’s income tax and ENFIA to eight. The first installment will likely be postponed from July to August or September. The Taxisnet platform for tax declarations will open in mid-May.