With the deadline for submitting tax returns expiring in 72 hours, it is now clear that the Ministry of National Economy and Finance will extend the submission process.
With the deadline for submitting tax returns expiring in 72 hours, it is now clear that the Ministry of National Economy and Finance will extend the submission process.
According to the latest figures, out of a total of 6.6 million returns that need to be submitted in total, as of today, July 23, 5,484,719 returns have been submitted. This means that there are still 1,131,793 returns to be submitted within the next three days.
Based on this number, it requires the submission of approximately 377,264 returns daily for taxpayers to meet the deadline. This is impossible.
According to accountants, there is a continuous need for the submission of amended returns due to new income statements submitted by entities, errors in automated returns, and significant pending issues. Tax professionals emphasize that the deadline for return submissions cannot be before September 30.
Despite the apparent problems, the government insists that no extension will be given beyond July 26, without providing clear explanations for its refusal. Accountants wonder if the government is concerned about state revenues or if it is about keeping some promise.
Accountants are now demanding that August cannot be a month with filing obligations. “We cannot understand why we do not have the right to rest in August for ourselves and our colleagues. Why should we continue to record more colleagues with psychosomatic illnesses, leading to dead-end situations,” they state emphatically.
In case no extension is granted, taxpayers who do not submit their tax return by Friday will face fines of up to €500. Specifically, the fines are structured as follows: €100, regardless of the outcome of the settlement, for late individual returns. A fine of 0.73% is also imposed on outstanding returns for each month of delay. €100 for late initial returns of individuals and legal entities that keep single-entry books and are credit or zero, and €250 for debit ones. €100 for late initial returns of individuals and legal entities that keep double-entry books and are credit or zero, and €500 for debit ones.
32.6% of E3 forms remain to be submitted
Only 67.4% of E3 forms, the statements of financial data from business activities, have been submitted to the tax office to date.
According to the data from the tax administration, a total of 1,069,086 E3 forms have been received so far out of a total of 1,585,809 returns expected to be submitted this year. This means that so far, approximately 32.6% fewer returns have been submitted than expected.
According to tax administration officials, mistakes are not uncommon as taxpayers face new requirements and procedures related to the E3 form. First and foremost, it should be noted that there is an obligation to submit the E3 form before the final submission of the income tax return (E1 or N), even if the income is zero. If the E3 form has already been finalized, the taxpayer can modify it up to the final submission of Form N or E1. After the final submission, the possibility of modifying the E3 closes.
In case an error is discovered in the E3 form, the taxpayer can submit an electronic amended return to correct any mistakes. Starting from the tax year 2023, categories of income and expenses are prefilled with amounts in the relevant codes of the respective tables, based on data transmitted to AADE’s digital platform, myDATA, and their classification, according to current decisions.
The pre-filling of the E3 form codes aims to facilitate the taxpayer and is not mandatory. The pre-filled amounts in the codes can be modified by the taxpayer. If there has been no prior classification of the relevant expenses in the myDATA digital platform, all expenses are pre-filled in code 585 (“Various Operating Expenses”) in the column “Total”, in option 016 of the relevant Subtable.
Completing the E3 form is an obligation and responsibility of the taxpayer, which must be executed accurately and in accordance with the instructions. According to existing data in the Registry file, the following are filled in automatically: the responsible submission service, the tax year, the category of books if available, and the main activity code (KAD). Additionally, on the first page of the E3 form, the following fields are prefilled: the date of first establishment, the date of commencement of validity for the current tax year (unless there was a cessation of operations before the tax year 2022), and the date of cessation of operations if it took place within the tax year 2022. The prefilled data can be modified if there is an update in the registry of the responsible service.