He also clarified that no extension will be given to tax returns.
The process of completing, submitting and clearing personal income tax returns for more than 1.7 million taxpayers is changing from this year.
The three changes, which specifically concern 1,000,000 employees and pensioners and 735,320 self-employed, are, in detail, the following:
1 Complete pre-filling of declarations so that they are ready for immediate submission or for automatic submission when the deadline expires. This year around 1,000,000 employees and pensioners without income from other sources (property, business, agricultural holdings, etc.) will have their income tax returns ready for electronic submission without having to fill in anything extra themselves. In the event that they themselves have not submitted them by the final date – submission deadline, the returns will be submitted automatically at the expiration of the deadline by the AADE itself, so that none of these taxpayers will be allowed to submit an overdue initial return.
2 Application of presumptive determination of taxable income based on objective criteria. The taxable incomes of 735,320 individual businesses trading in goods, providing services and freelancers will be determined alternatively with objective criteria for the year 2023 and specifically based on the calculation of the amount of the annual gross earnings of a private employee who receives the minimum wage of 780 euros per month, that is, starting from the calculation of the amount of 10,920 euros. From here on, increments of this amount are foreseen depending on the years of operation, the amount of the payroll expenditure and the turnover of the business.
For businesses that have been operating for less than 4 years, the system will not be applied, while for businesses that have been operating for 4 and 5 years, the amount of 10,920 euros will be calculated limited to 33% and 67% respectively. For businesses that have been operating for 6 years, the amount of 10,920 euros will apply as a basis for calculating the presumptive income.
For businesses operating from 7 to 9 years, the amount of 10,920 euros will be increased by 10% and will amount to 12,012 euros, for those operating from 10 to 12 years, the amount of 10,920 will be increased by 20% and will amount to 13,104 euros , while for those operating for more than 12 years it will be increased by 30% and will jump to 14,196 euros.
If the company has staff who are paid wages higher than the minimum, the highest annual gross salary paid will be compared with the amount resulting from the previous calculations, as the case may be, and if it is higher it will be taken into account as the basis for calculating the imputed income. Furthermore, the calculation basis will be increased by 10% of the total annual payroll expenditure with an increase limit of 15,000 euros, as well as by 5% of any additional difference of the company’s turnover from the average turnover of the businesses of the same Activity Code Number (KAD).
The amounts of presumptive income resulting from this new taxation system will be pre-filled in the tax return forms.
3 Horizontal 50% reduction of the application fee for sole proprietorships. The 650 euro business tax imposed each year on those who run sole proprietorships and for the tax year 2023 their incomes will be determined for the first time based on the new taxation objectives is reduced for the 2023 fiscal year by 50% and is limited to 325 euros.
From a week
The online application for filing this year’s personal income tax returns will go live early next week (probably from Monday). A total of around 9,000,000 taxpayers will be asked to submit the basic E1 tax form online to declare their 2023 income.
Due to the delay in the launch of the application for the submission of declarations by at least 22 days compared to last year (in 2023 the application opened on March 31), the leadership of the Ministry of National Economy and Finance has already decided to extend the submission deadline of this year’s declarations as many days as the delay.
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