The submission of income tax returns for the year 2023 began yesterday, with the deadline for their submission on Friday, July 26. Yesterday, moreover, the list of the Independent Public Revenue Authority (AADE) with the average annual receipts from 382 professional branches was made public. In other words, this is the average turnover that they declared to the tax office businesses and freelancerswhich will be used along with other parameters to determine the presumptive tax that more than 730,000 professionals will pay.
This “receipt x-ray” reinforces the government’s argument that it was necessary to impose a presumption on professionals as in many cases the professionals declare incomes that are not consistent with their business activity. The average annual turnover gives a typical picture hair salons at 15,156 euros, the average turnover cab at 16,281 euros, the average turnover architects at 18,865 euros. Receipts…. which lead to net profits below 10,000 euros! Also 35,967 Lawyers they appear with a gross income of 22,890 euros each, while the average gross income for 23,471 doctors amounts to 46,640 euros.
In conclusion, from the list published by AADE, it appears that the average amount of gross income that the tax office will take into account in order to calculate the minimum presumptive income ranges from 4,000 euros (individual businesses from the field of watch and jewelry repair) to 1.2 million .euro (tobacco and fuel companies).
SOS for pre-filled declarations
Regarding the tax declarations that taxpayers will submit this year, it should be emphasized that this year, for the first time, more than 1.3 million taxpayers, mainly employees and pensioners, will not have to submit their declarations themselves, since they will pre-filled by AADE with all the information it has. Taxpayers who, based on their data, have been selected for the above procedure, will receive a notification from AADE in their e-mail, in the “My Messages” box of the digital portal myAADE and to myAADEapp.
Since the taxpayers they consider that the details are accurate and there are no other details that have not been pre-filled, they do not need to take any action to submit their statement, as it will be finalized by the AADE, with an internal procedure, on Tuesday 2/7/2024, after the end of the initial deadline for submission of declarations. In any case, if they wish, they can submit their declaration earlier.
If the information is not accurate or information is missing, these taxpayers are required to amend and/or complete the correct information and submit their declaration, by the end of the submission deadline.
Particularly:
- a) until Monday 1/7/2024 they can submit an initial declaration
- b) from Tuesday 2/7 until Friday 26/7/2024 they can submit an amending declaration, without penalties (the original declaration is still valid).
For their convenience, a special digital file has been created in the application of income tax returns, which includes:
- • the elements that AADE has taken into account and
- • the tax result, debit, zero or credit, that arises based on them.
AADE will register receipts and collections from AirBnB
Pre-filled, with the possibility of modification, in the tax returns will be the data of income from short term leases on the E2 form and, the amounts of expenses with electronic means of payment (including those deducted from income or counted twice to form the required amount of expenses with electronic means of payment) in codes 049-050 of the form E1. Furthermore, the calculation of the annual minimum income from the exercise of business activity has been incorporated into E1 (Articles 28A to 28D CPC).
New digital files
Two additional digital files are offered for the convenience of taxpayers:
1. Summary of the Tax Determination Act (declaration), which includes the basic information on the income of the taxpayer and the identity of the debt for the payment of the tax or information on the tax refund. In addition, from 13/5/2024, the Tax Determination Deed and its Summary will carry a QR Code, to verify their authenticity.
2. Summary of E1, which includes only the completed codes of the statement
Additionally, the E3 has been redesigned for easier filling. As last year, the prefilling, with the possibility of modification, of individual codes of the form is applied, based on the data transmitted to the myDATA digital platform.
Weekly information for taxpayers
The taxpayers who have been selected for the process of automatic submission of the declaration by AADE, as well as those who have submitted declarations before the submission deadline, will be updated on a weekly basis (from the second 15th of May) via e-mail and in their inbox at myAADE and myAADEapp for changes to the data that AADE has received for them from third parties (eg employers, credit institutions), so that they can check if their tax liability changes and take the necessary actions.
Taxpayers who declare dependents (in Table 8 of the E1 form), will be immediately informed, through the application, of the dependent’s obligation to submit their declaration beforehand.
The IVAN declaration is mandatory for residents of Greece
For the convenience of tax refunds it becomes mandatory to register an IBAN on the myAADE digital portal for all tax residents of Greece who have not yet declared an IBAN, before submitting the tax return. Accordingly, the registration of IBAN becomes mandatory for foreign tax residents who have not declared an IBAN and for whom the right to a tax refund will arise from the declaration.
Acceleration of tax refunds and offsets
In addition, the offsets and the tax refundsas well as the payments of the amounts, as follows:
– Income tax refunds to taxpayers who do not have tax or insurance debts or an awareness obligation, will be sent to the Bank of Greece for immediate refund on a weekly basis.
– Income tax refunds to taxpayers who do not have insurance debts or awareness obligation and have tax debts, will be settled centrally on the first and third ten days of each month, starting from 12/5/2024. Those offsets that cannot be carried out centrally, will be processed as soon as possible by the competent Services, DOU / KEBEIS.
– Income tax debts will be set off as a matter of priority with refund rights, which exist or will arise until 31/7/2024, so that in case of payment of income tax through the set-off, the 3% discount will be granted.
What professionals declare to the tax office
According to the data published by AADE
- • Taxi operators: They amount to 29,108 and the gross income they declared in 2023 amounts to 16,281 euros. In 2022 they had declared gross revenues of 11,743 euros and net profits of 3,726 euros.
- • Lawyers: They amount to 35,967 and the gross income of 2023 amounted to 22,890 euros. In 2022 they had declared gross revenues of 18,960 euros and net profits of 14,405 euros.
- • Doctors: 23,471 declared last year a gross income of 46,640 euros against 43,541 euros in 2021.
- • Dentists: They amount to 10,907 and declare a gross income of 28,289 euros. Their average gross income amounted to 25,752 euros and their net income to 8,121 euros. They paid a tax of 1,881 euros. Net profits are 26% of gross.
- • Architects: The 10,468 architects declared in 2023 an average gross income of 18,765 euros.
- • Bar owners: The 29,775 bar owners declared a gross income of 37,777 euros, while in 2022 it was 28,734 euros. The average net income was 6,860 euros
- • Plumbers: 8,506 natural persons are employed in the sector. The gross income of 2023 had reached 29,463, while in 2022 at 27,004 euros. The net profits they declared in 2022 were 7,617 euros
- • Carpenters: The 4,904 carpenters declare gross profits of 32,913 euros. In 2021 they had declared 30,996 euros. Their net profits had reached 7,993 euros in 2021.
- • Electricians: 8,473 natural persons are active in the sector. The average gross income in 2022 amounted to 32,635 euros. In 2021, the average gross income was 32,785 euros and the net income was 9,431 euros.
The list of average gross receipts per CA is central to determining the minimum presumptive income. The specific criterion defines a 5% surcharge on the amount by which the debtor’s turnover exceeds the average annual turnover of the CPA in which the debtor makes the highest income.
It is recalled that the other criteria are years of activity and payroll costs. For example, a self-employed person with an annual turnover of 35,000 euros exceeds the average annual turnover of the CAO by 10,000 euros (annual turnover of 35,000 euros – average annual turnover of the CAO of 25,000 euros = 10,000 euros). Therefore, the 5% surcharge will be applied to the amount of 10,000 euros.
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