FINANCE

Targeted solutions to tax issues

targeted-solutions-to-tax-issues

The start of this year’s income tax declaration submission is being delayed as the government seeks to resolve two significant issues that would have otherwise led to additional tax loads for hundreds of thousands of taxpayers.

The issues concern the implementation of legislation on online payments and the assets of taxpayers used as evidence of income (“tekmiria”). Both regulations are difficult to apply amid the pandemic, as incomes suddenly crumbled last year – due to the lockdowns – leading to the distortion of taxpayers’ normal status and activity.

Sources say that this week the Finance Ministry, in cooperation with the country’s creditors, will supply a solution to avoid the imposition of extra tax on many taxpayers. The ministry is expected to propose the suspension of the measure forcing taxpayers to spend at least 30% of their annual income through online payments, but only for pensioners and those who are proven to have been hurt by the pandemic.

On the issue of the tekmiria, the government proposal also concerns their suspension for one year for workers on furlough, as well as for freelancers in the categories damaged by the lockdowns.