Tax Flash 26.4.2021 - Law 4797/2021

Recently the law 4797/2021 about "state assistance to businesses and non-profit organizations for natural disasters, urgent arrangements for the support of the economy, supplementary state budget and pension regulation" was enacted, in which was also included the amendment of the Ministry of Finance regarding provisions for this year's tax returns and with which the following tax implications arise. More specifically:

1. Tax return deadline-tax payments

It is stipulated that the income tax returns of the fiscal year 2020, legal persons or legal entities, whose tax year ends at 31.12.2020, as well as natural persons, are submitted within the deadline by 27.8.2021.

The payment of the tax is carried out in eight (8) equal monthly installments, as specifically defined, provided that if the personal income tax return is submitted until 28.7.2021 and the resulting tax due is paid in a lump sum until the last working day of July 2021, is provided in the total amount of tax and other contracted debts, a discount of three percent (3%).

2. Uncollected rents

 It is stipulated that, especially for the fiscal year 2020, it is not included in the total income of the lessor, income from rental of real estate, which has not been received by the beneficiary, in the event that by the deadline for the submission of the personal income tax return, it has been notified to the lessee an out-of-court termination of the lease, due to non-payment of the rent or out-of-court nuisance, for the payment of the rents.

3. Separate tax returns of spouses

May 6, 2021, exceptionally for personal income tax returns for fiscal year 2020, is determined as the final day of the deadline within which one of the spouses chooses, with an irrevocable declaration, the separate submission of an income tax return. (Article 67 par.4 approx.II, n.4172/2013).»

4. Foreign income - transfer of tax residence

The following dates are defined:

- 31.05.2021 is set as the final date of submission of the relevant application for inclusion in the alternative way of income taxation under par. 3 of Article 5a and par. 3 of Article 5B, arising abroad and to be submitted in the year 2021. The Tax Administration examines the application and issues a decision on the application, no later than the last working day of the month of June of the same year.

- 30 September 2021is set as the closing date for submission under par. 3 of article 5C of the relevant application for inclusion in the special tax regime of income from employment and business activity, resulting in Greece for natural persons who transfer their tax residence in Greece, which will be submitted in the year 2021, concerning withdrawal of service, or commencement of a sole proprietorship, which took place until July 31 of this year. The Tax Administration examines the application and issues a decision on the application, no later than November 30, 2021.

5. Evidence

A special arrangement is introduced for the fiscal year 2020, on the alternative way of calculating the minimum tax, for specific categories of taxpayers whose incomes were affected within 2020 by the COVID-19 pandemic.

6. Electronic payments

A special category of income with an exceptional character is defined (e.g. cases of exceptional allowances, fees, grants and financial aid granted in response to the consequences of the dispersion risk of COVID-19), for the fiscal year 2020, which are not taken into account in the actual income from paid work – pensions, which gives the basis for calculating the required amount of expenditure by electronic means of payment. [For each tax year it is set at 30% of real income, derived from paid work-pensions and business activity and up to twenty thousand (20,000) euros of expenses as well as real estate].

It is planned to increase the tax on income from paid work – pensions, in case that the declared amount of expenditure by electronic means of payment is less than the required amount of expenditure. Identified as exceptions to the tax surcharge, specific categories of taxpayers who were financially affected due to the spread of the Covid 19 pandemic.

7. Extension of debt payments

More specifically: a) the deadlines for payment of established debts to the tax authorities and installments arrangements and payment facilities for which an extension of payment was granted by the decisions of the Minister of Finance issued from 1.1.2020 until the publication of this, delegated Article 8 of N. 1284/1982 (a ' 114), are extended until 31.12.2021. B) A payment of established and overdue debts of natural and legal persons and legal entities falling within the scope of the decisions of the Minister of Finance issued from 1. 1.2020 until the publication of this, by delegation of par. 5 of the fifth article of N. 2275/1994 (a' 238), are suspended until 31.12.2021.

8. Joint responsibility

An extension of the application for the removal of liability and measures against jointly liable administrative legal entities and legal entities for tax debts is stipulated.

More specifically, it is stipulated that: “par. 28 and 29 of Article 66 of N. 4646/2019 (a' 201) are amended as regards the date of submission of the application, from 31 December 2020 to 30 June 2021.”

9. Committee For Extrajudicial Resolution Of Tax Disputes

Regulations are implemented for issues of the Commission of extrajudicial resolution, concerning the treatment of tax disputes, the collection and regulation of outstanding amounts, arising from tax disputes before the Council of State and ordinary administrative courts. In particular, it is considered that the request for extrajudicial resolution of a tax dispute includes a request of reduction of additional taxes, interest, surcharges and fines imposed against the applicant.