Income tax in eight tranches

Income tax in eight tranches

Income tax declarations submitted as of Tuesday night will be processed on the basis of a new payment plan for up to eight installments.

A decision published on Friday in the Government Gazette foresees the payment of income tax by individuals and businesses in eight monthly tranches, as well as a 2% discount for the payment in a lump sum by individual taxpayers, as Prime Minister Kyriakos Mitsotakis had previously announced.

Any tax statements that have already been submitted will see their adjusted payment plans posted on their personal Taxisnet account on Tuesday. 

If taxpayers are unable to pay in eight tranches, they can enter the Finance Ministry’s payment plan providing for up to 24 monthly installments. There is also an option offered by banks offer for 12 interest-free tranches.

In the meantime tax declaration submissions continue to move very slowly, with some 1.8 million statements pending, while the July 29 deadline looms large.

For all taxpayers to have their income tax declarations submitted in time, more than 180,000 statements will need to be uploaded every day for the next nine days, which appears exceptionally unlikely.

Kathimerini understands that the ministry will in the next few days announce a further extension of the deadline until mid-August.

According to the latest figures from the Independent Authority for Public Revenue, by Monday 4,624,188 declarations had been uploaded, corresponding to 6,411,687 tax clearance notices. They showed that 806,768 individuals stand to receive a tax rebates averaging at 276 euros, while another 2,159,432 individuals will have to pay tax that averages at €796.

The suspension of tax payments due to the coronavirus helped the reduction of new debts to the state created in April. IAPR figures revealed a reduction by 10.5% year-on-year as this April €204 million of fresh debts were created against €228 million a year earlier.

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