What are the changes to tax returns?

The changes and pitfalls hidden this year by the new basic form of the E1 tax return are analyzed on in.gr by tax expert Mr. Antonis Mouzakis

After the Easter holidays, the online portal of Taxinet is expected to be opened for the submission of the tax declarations of the incomes earned last year, which will close at the end of June.

The new E1 form has key changes which can also be a trap for taxpayers.

Speaking to in.gr, Mr. Mouzakis says:

The new E1 form of the personal income tax return for the tax year 2017 will have several and substantial changes compared to the previous year's form.

1) The amendment to E1, which concerns almost all households with income from wages and pensions, is the activation of code 049 and the addition of the corresponding code 050 in the Spouse/M.S.S. field. This code refers to the expenditure on the purchase of goods and the provision of services made by electronic means of payment in order to guarantee the indirect tax-free.

It is important to mention that according to article 5 of the POL. 1005/2017, the amount of expenses is declared individually by each spouse or by each party to a cohabitation agreement. In the event that the required amount of expenses is covered by either of the two spouses or parties to a cohabitation agreement, any excess amount may be transferred to the other spouse or the other party to the cohabitation agreement during the liquidation for any coverage of the minimum required amount of expenses. That is, one spouse covers the tax-free allowance of the other spouse in the event that the latter does not have the tax-required expenses.

At this point, we should mention that the tax reduction concerns those who have income from salaried services and pensions and does not concern taxpayers with other sources of income.

If the minimum required amount of the scale listed below is not covered, then the tax is increased by the amount resulting from the positive difference between the required amount and the declared amount, multiplied by a factor of twenty-two percent (22%).

In order to maintain the tax reduction, the taxpayer is required to incur costs of acquiring goods and receiving services in the country or in member states of the European Union or the EEA, which have been paid by electronic means of payment, such as, indicatively but not limited to, cards and card payment instruments etc.

Exempted from the obligation to use electronic means of payment are taxpayers seventy (70) years of age or older, people with a disability rate of eighty percent (80%) or more, those who are in legal aid, and tax residents of the EU. or of the E.O.H. (under the conditions) that are required to submit a declaration in Greece and are taxed at the scale of salaried work and pensions.

Who are excluded?

The following categories of taxpayers are exempted from the obligation to use electronic means of payment:
a. Public officials and civil servants who serve abroad, as well as tax residents of Greece who live or work abroad, (subject to the provisions of the law).
b. Minors who are required to submit an income tax return and are taxed at the scale of employees and pensioners.
c. Taxpayers who live permanently in villages with a population of up to 500 inhabitants and on islands with a population of less than 3,100 inhabitants, according to the last census, unless they are tourist sites.
d. Taxpayers who have no income from any category or have income only from capital and/or capital transfer capital and their presumed income does not exceed the amount of 9,500 euros.
e. Taxpayers who are registered in the unemployment register of the OAED, for the difference that arises between their imputed and total income.
f. Taxpayers who are beneficiaries of Social Solidarity Income (KEA).
g. Those serving their mandatory military service.
h. Taxpayers who are in a state of long-term hospitalization (beyond 6 months).

2) In tax year 2017, the tax deduction brought about by medical receipts was abolished. The E1 form was harmonized with the orders of the tax law, with the result that the corresponding code 051-052 was abolished in the E1 form of the year 2017.

3) On the first page of the form, code 007 – 008 was added for whether the taxpayer hosts natural persons subject to a declaration, excluding protected persons.

4) The form separates the collected interest of domestic origin, which comes from deposits or comes from other causes (e.g. interest on loans between individuals), code 647 – 648.

5) In table 5 in the property details added (in relation to the main residence) the postcode field, code 208, to make it easier to find the zone value of the property.

6) Also, on the last page of the form, a code has been added that concerns amounts of money received that do not reduce the annual expenditure, code 429 – 430. In
conclusion, the amendments made to E1 of the tax year 2017 in combination with the universal amendment of the E3 form (status of financial data from business activity) require in most cases special tax knowledge.

Source: https://www.dnews.gr/eidhseis/oikonomia/443171/mouzakis-sto-dnews-perimenoume-ti-diataksi-gia-ti-forologisi-ton-airbnb http://www.in.gr/2018/03/30/economy/oi-eidikoi-apantoun/poies-einai-oi-allages-stis-forologikes-diloseis/