TAXATION

Extraordinary tax breaks due

extraordinary-tax-breaks-due

The penalty imposed on taxpayers who fail to make online payments amounting to at least 30% of their annual income will this year be reduced or discontinued through a Finance Ministry amendment to be voted into law on Wednesday. Those who have suffered financially as a result of the pandemic will also be exempted from the calculation of their income based on their assets (known as “tekmiria”).

Taxpayers hurt by the lockdowns or aged 60 years or older who failed to reach the 30% threshold last year will not pay any fines at all. The penalty of 22% of the difference between the threshold and the sum of their actual payments will be halved to 11% for other taxpayers, but only for the final third of the distance (between 20% and 30% of their income).

The amendment provides for a series of other tax breaks too, clearing the landscape ahead of the start of the income tax submission process. It also coincides with the 10th post-bailout assessment of the Greek economy by the country’s creditors, with whom those regulations have obviously been discussed.

According to the ministry’s statement, this year’s income tax can be paid in up to eight equal tranches, provided that the declaration is filed by July 28, with the first installment due by July 30. Otherwise – just like last year – taxpayers may submit their statement by August 27, but will have to pay not one but two tranches at once at end-August. In case of a payment of the tax in a lump sum by July 30, there will be a 3% discount.

Furthermore, any expected revenues from unpaid rents will be excluded from the total income of landlords as long as a formal notice (“exodiko”) is served to the tenant.

The amendment also provides for the payment of the 2021 Single Property Tax (ENFIA) in six monthly installments, starting in September 2021 and ending in February 2022. Sources say the amount due will be the same as last year, despite the completion of the adjustment process of official property rates.