Tax declarations: The platform opens today at noon – The secrets for less tax

Two days later than originally planned, namely today, Thursday, April 24, the platform opens for the submission of tax returns by approximately 9,000,000 taxpayers with minimal but essential changes to the basic E1 form, which mainly concern the introduction of income from 2023 onwards minimum net income from business activity.

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The deadline for submission has been set for June 30, but according to statements by the political leadership of the Ministry of National Economy and Finance, an extension will be given until the end of July due to a delay in opening the application. However, they themselves declare that another extension will not be granted. It is recalled that last year the submission process lasted until the end of August.

According to the new form of the tax office as determined by a relevant ministerial decision published in the sheet of the Government Gazette in table 2 (clearance information) two new rows have been added where the question is asked to professionals if they are exempt from the application of the minimum net income from business activity or if they are entitled to a reduction of the minimum net income from business activity.

A little below and specifically in table C2. Income from business activity there is a new field (codes) where professionals are asked if they dispute the minimum amount of net income. Here it will really be interesting to see how many will say yes and how many will say no.

Also, four new codes 405 and 407 for the debtor and 406 and 408 for the wife have been added to the same table, where the minimum amount of net income and the net presumed profits of construction companies under the new provisions are indicated.

Also, new codes have been added to table 6 of the tax return (additional amounts of income and other information) where the taxpayer is asked to enter if there is any tax-exempt income from business activity in the case of determining a minimum net income.

On the other hand, the code related to the amounts withheld for a special solidarity contribution has been deleted from table 4 (Taxable incomes and deductions) in Incomes from Salaried Work and Pensions as this specific tax has now been abolished.

This year’s tax return submission process, although there are no substantial changes to the basic form of the tax office apart from those concerning freelancers, differs significantly compared to previous years as for the first time the possibility is given to those who have

solely income from wages and pensions to leave the completion and submission of the E1 to the ‘luck’ of the Inland Revenue Authority. In practice, this means that if someone belongs to the above category of taxpayers and does not enter the AADE platform at all to complete and submit their declaration, the submission process will be completed normally and in fact on time.

However, this new system for 1,000,000 employees and pensioners hides some serious pitfalls that those involved should take into account so that they do not have to rush to submit amending or supplementary declarations afterwards. The pre-filled codes will include salary or pension details as well as withheld taxes, interest on deposits, details for houses, cars, private school tuition, loan installments, shopping expenses with electronic money, dependent children.

For the remaining categories of taxpayers such as freelancers, farmers, income earners and those who receive dividends from participation in businesses, nothing changes. They will submit the tax declarations from the beginning by filling in forms E2, E3, etc. with the corresponding codes. This category also includes employees and pensioners who, in addition to their income from wages and pensions, receive some rent or have income from other sources.

Also, if during the previous year someone bought or sold an asset, this should also be declared by the taxpayer himself because in the case of the purchase, he would have to justify the source of the money he spent.

Especially in the matter of the consumption of capital from older years, in order for a taxpayer to be able to cover the poten esches for a purchase of great value, he should pay special attention and fill in the corresponding codes correctly, which in no case are pre-filled. In the event of an error, an amended statement must be submitted, and indeed if this is submitted after the end of the deadline for submitting the statements, a fine of 100 euros is imposed.

What changes for professionals

The new withholding tax system for professionals, self-employed and businesses adds new codes to the E3 form to calculate the income earned in 2023.

Among the new data that the approximately 700,000 professionals will have to fill in are the date of commencement of operations where the years of operation of the company are derived, the total annual payroll costs of its employees (in the case that it employs staff). The amount of the company’s annual turnover results in any case from the data in its books that are entered every year in the forms of the tax office.

At the same time, professionals must declare:

-If they are exempt from the new taxation system (large children or with a disability of 80% or more)

-If they are entitled to a reduction of the minimum annual net income that will be determined with the new system (they are based in

small village, disability 67%-79% etc. ).

-If they fall into a category that is exempt from the presumptive method of taxation, such as a patient in hospital, soldier, prisoner, etc.

– If they wish to be checked by the AADE to confirm that their income is indeed below the minimum set by law.