TAXATION

Tax payment to start in April

ENFIA property levy likely to be included in plan to spread out cost across the year

tax-payment-to-start-in-april

Independent Authority for Public Revenue chief Giorgos Pitsilis issued a decision on Monday calling on corporations and state entities to submit online by February 28 all their documents on the payments made to taxpayers in the course of 2021, thereby confirming that the government will introduce a new system for tax payments, spread out across the year.

According to the planning of the Finance Ministry and the IAPR, the submission of tax declarations for the 2021 incomes will begin in March, with the first tranche due by end-April for most taxpayers. The tax dues will likely be spread into 10 equal installments, with the same likely to happen with the 2022 Single Property Tax (ENFIA).

Practically, this means that soon after the completion of the monthly payments for the 2021 dues by February 28, payments will resume within a couple of months, this time concerning the 2022 dues.

The decision issued by Pitsilis calls on enterprises and the various public sector bodies to submit by the end of next month all details pertaining to salaries, pensions, business activity payments and dividends for the 2021 tax year. The tax statements will be filled in automatically according to those documents, including also the details on the amounts withheld for tax payment.

The directions the IAPR has sent to the accounting offices of enterprises also contain a series of details on the application of income tax. For instance, the childbirth benefit is exempt from any tax and levy (including the solidarity levy) and does not count toward the total annual household income for any purpose.

Likewise, the special handout issued to financially vulnerable pensioners in 2021 is also tax-free, will not have any solidarity levy charged on it and does not count toward the income criteria regarding any social or welfare benefit.

There will also be no tax or levy imposed on the special-purpose compensation issued to workers who had to have their contract suspended owing to the measures against the pandemic.