TAXATION

Tax process starts this month

Declaration submission to begin within March, with ‘tekmiria’ and online receipts factored in

Tax process starts this month

Taxisnet, the online system of the tax administration, is expected to open by the end of this month for the submission of income tax declarations by more than 6 million taxpayers.

The system of three tranches – one every two months – provided for under the existing legislation for the payment of the income tax due after declarations are processed, has now been stretched out to eight monthly installments, starting from the end of July. This is meant to ease the pressure on taxpayers and allow them more time to fulfill their obligations, while stemming the wave of new unpaid taxes. Notably, expired dues to the tax authorities have climbed to 110 billion euros.

This year sees the return of the online receipts rule, whereby all taxpayers up to the age of 70 years have to cover at least 30% of their annual income with payments made electronically. These included purchases made by credit or debit card, online or through e-banking, up to a maximum amount of €20,000. Taxpayers who failed to reach that threshold will have to pay a fine equal to 22% of the distance they have not covered.

Therefore, a taxpayer with an annual income of €15,000 who made online payments of €3,000, i.e. 20% of his or her revenues, will need to pay additional tax equal to 22% of the tenth of his income he has not covered, i.e. dues of €330.

The 2022 declarations of last year’s incomes also see the reinstatement of the “tekmiria” system of arbitrary estimates of incomes. It concerns the use of one’s taxable assets as evidence of one’s actual income, and just like the online receipts, it is being reintroduced after last year’s hiatus due to the lockdowns in 2020.

Among the assets considered as “tekmiria” for the assessment of real incomes are real estate properties, private vehicles (based on engine size), tuition fees to private schools, expenditure on domestic help, driving instructors, private teachers and other such services, yachts (based on length), swimming pools, and spending for the acquisition of expensive cars, works of art, other valuable items, etc.