FINANCE

Caution urged for statements

Platform opened yesterday for new income tax declarations, with a July 27 deadline

caution-urged-for-statements

The platform for the submission of this year’s tax declarations opened on Thursday, and taxpayers will need to be extra cautious in filling in and uploading their statements for 2020 incomes.

The reason for that is that the new E1 form includes new entries concerning online receipts, property renovations, stock options, the taxing of athletes and pensioners abroad, and even the production of electric vehicles.

Among the new entry codes is the 625-827 set: In this section, taxpayers have to declare any capital they have invested in a company registered in the national register of startups. According to the law, if an angel investor spends up to 300,000 euros, 50% of that expenditure is tax-exempt.

Another first this year is that freelance professionals and enterprises will likely be among the first taxpayers to rush to submit their statements, as the former anticipate significant tax rebates, while the latter will need to declare the necessary data in order to participate in the program for subsidizing companies’ fixed expenditure.

This is also the first time the new minimum tax rate of 9% for the incomes of individuals will apply, along with the reduced corporate income tax deposit to 55% for freelance professionals and to 70% for enterprises.

The online portal has opened to accept up to 9 million taxpayers and the tax due can be paid in up to eight monthly installments, starting from the end of July. Taxpayers who submit their declaration by the July 27 deadline will be able to secure a 3% discount if they pay all their dues at once. Just like last year, taxpayers can still submit their declarations in August without facing a penalty, but they will have to pay both the first and the second monthly installments by the end of August.

Finance Minister Christos Staikouras stated on Thursday that entrepreneurs had better hasten to submit their income tax declaration, as the E3 form will be key for their applications to the new measure for a fixed spending subsidy.