Taxpayers dragging their heels this year
More than 2.4 million tax declarations have yet to be completed, with less than four weeks until the July 29 deadline. The original deadline was last Thursday, but only five out of every eight statements due have been uploaded to date.
It is clear that taxpayers are in no hurry to submit their declarations, according to data from the tax administration, despite the fact that the electronic system opened earlier than usual this year. So far 62.6% of declarations have been submitted and by late July nearly 2.5 million declarations should be submitted. This means that around 100,000 statements must be submitted on a daily basis. Those who do not make it in time will be asked to pay a late declaration fine, which starts from 100 euros and reaches up to €500.
From the processing of the statements that have been submitted, it appears that again this year almost seven in 10 taxpayers either do not have to pay any extra tax for the income they earned in 2021 – i.e. they have a zero settlement – or they have a tax rebate due. The remaining three in 10 taxpayers will have to pay an additional amount.
Up until Friday at least 3,867,744 statements had been submitted, while in total it is estimated that approximately 6,400,000 statements will be submitted. From the statements that have been submitted, 53.77% are nil – i.e. no extra tax is incurred and no refund is due; 32.21% have additional dues, with the amount of tax that taxpayers are required to pay amounting to €1.29 billion or €954 on average. The tax can be paid either in one lump sum, with a 3% discount until July 29, or in up to eight monthly installments, the first being due by July 29. Alternatively, taxpayers have the option to pay the tax by credit card in 12 interest-free monthly installments or include the debt in the fixed arrangement that provides for up to 24 interest-free monthly installments.
Meanwhile 13.92% of processed statements will incur a tax rebate, which adds up to €197.18 million, or €353 on average.
For new self-employed professionals or entrepreneurs who have not yet filed their tax declarations, it is important to note that if they started a business for the first time from January 2019 onward, and in 2021 had a gross income of up to €10,000, they will be taxed at a rate of 4.5% instead of 9%.
