The AADE platform was activated for the submission of the tax returns of 9 million taxpayers, with a number of changes after the passing of the new Code of Tax Procedures.
2024 is the year when the tax return has pre-filled most of the information whether it concerns the E1 or E3 form.
However, most taxpayers are expected to deal with the issue after Easter. Main reason, the advance announcement by the Ministry of National Economy and Finance that there will be an extension of the submission deadline until the end of July.
The only exception is perhaps those who have a tax refund as it is a reason to speed up the relevant process since the money is now paid in a short period of time, provided that there are no other debts to the tax office.
What taxpayers need to know
One of the key changes this year is that around 1 million employees and pensioners, who have no income other than wages and pensions, will not have to submit their tax return themselves, but the tax office itself. However, it would be a good idea to check the information provided to see if there are any errors.
Tax returns: All the changes to E1 – The 4 +1 codes professionals need to watch out for
The new imputed income regime
Also, for the first time approximately 735,000 freelancers and self-employed people are being implemented the new minimum presumptive income regime. They will need to submit their tax returns from the beginning by filling in forms E2, E3, etc. with the corresponding codes.
Especially in the E3 form, new codes have been added for the calculation of the income obtained in 2023 such as the date of commencement of operations where the years of operation of the business are derived, the total annual cost of payroll of its employees (in the case that it employs staff), the amount of the annual turnover of the business as shown by the data in its books that are recorded every year in the forms of the tax office. Professionals will also have to declare if they are exempt from the new taxation system (under certain conditions), if they are entitled to a reduction of the minimum annual net income that will be determined with the new system, if they fall into a category that is exempt from the presumptive method of taxation, or if they wish to have an audit carried out by AADE in order to confirm that their income is indeed below the minimum set by law.
What should the pretentious watch out for?
Pretenders should pay particular attention to the following points:
– the pre-completion of the E3 is done for convenience and the information is not binding. This means that taxpayers can modify the data entered in the codes.
– for young professionals, who practice the profession for up to three years, no minimum limit of taxable income will apply and they will be taxed based on their books.
-The taxpayer can challenge the application of the minimum annual income, requesting that he be taxed based on his accounting records, i.e. based on his “real” profits or the recognition of his loss. In this case, the tax authority is required by law to carry out a tax audit to verify the accuracy of the taxpayer’s books and information.
The changes to the taxation system of freelancers and businesses also include the pretense fee.
Along with the income tax they will be asked to pay the entertainment fee which this year will amount to:
-325 euros for the self-employed and self-employed
-400- 500 euros for natural persons whose income comes from an individual service business or self-employment and have a written contract with up to three natural and/or legal persons, or 75% of their gross income comes from one natural and/or and legal entity
-800 euros for legal entities that run a commercial business and are based in tourist locations and in cities or villages with up to 200,000 inhabitants.
-1,000 euros for legal entities carrying out commercial activity based in cities with a population of more than 200,000 inhabitants.
It should be noted that as the Minister of National Economy and Finance Kostis Hatzidakis has announced, this year will be the last year that professionals will be asked to pay the pretension fee as it will be abolished for the incomes that will be obtained this year and will be declared next year.
The payment of the tax
Regarding the payment of income tax, the payment is made in 8 monthly installments from the end of July until the end of February 2025.
However, given that the deadline for submitting this year’s tax returns will be extended into July, it is most likely that two installments will be allowed until the end of August.
Based on the new Code, from this year taxpayers will be able to earn a 3% discount in the case of a one-time payment of the tax even if it is paid at the end of August.