By Chrysostomos Tsoufis

As every year, this year the AADE has issued the guide for completing the tax returns, which contains tips for reducing income tax. The taxpayer must pay particular attention to, among others, the following expenses:

Donations to general government bodies

They are completed in codes 059-060 and include, in addition to public bodies, holy temples and monasteries, patriarchates, charitable institutions, hospitals, among others.

These expenses reduce the tax by 20% but cannot exceed 5% of the donor’s taxable income with a minimum amount of €100.

Proof of the donation requires the receipt of the donation issued by the bank where the special account is located and a certificate of acceptance of the amount by the recipient.

Donations to charitable institutions

They are completed in codes 063-064 and reduce the tax by 40% of their amount. They cannot exceed 40% of the donor’s taxable income.

Cultural sponsorships

They are completed in codes 061-062 and concern cultural sponsorships to the State and the OTAs and the legal entities of the wider public. The amount deducted from income cannot exceed 10% of taxable income. Acceptance of sponsorship as cultural by the Ministry of Culture is required.

Production of an audiovisual work

Codes 663-664 are filled in and only concern natural persons who do not engage in business activity. Eligible expenses reduce taxable income by 30%

Party funding

Codes 055-056 and 057-058 are completed and the expenditure includes the financing of elected representatives of the Hellenic Parliament and the European Parliament. 20% of expenses are tax deductible if they exceed €100 but do not exceed 5% of the financier’s taxable income and in any case €20,000 for a party or coalition of parties and €5,000 for an elected official.

Any amount of funding to political parties or coalitions of parties, as well as to candidates and/or elected representatives of the Hellenic Parliament and the European Parliament that exceeds €500, must be carried out only through the bank accounts held by the beneficiaries of funding, with a registered deposit

Productive investments

Codes 623-624 are completed. The method and the special conditions are defined by the decisions of the Ministers of Finance, Development and Investments

Capital contributions

Codes 625-626 are completed. From the taxable income of the investor, an amount equal to 50% of the amount of the capital contribution to companies (SA, EPE, IKE) that have their headquarters in the territory and are written in the start-up business register is deducted.
The discount is applied for a capital contribution of up to €300,000 in total, in up to 3 companies up to the amount of €100,000/company.

Building upgrade costs

Codes 627-628 are filled in and the upgrade can be energy, functional or aesthetic.

The expenses reduce the tax by 40% of their amount after they are spread equally over 4 years. The maximum spending limit is €16,000. Therefore, the tax reduction cannot exceed €6,400 in a period of 4 years.

It is REQUIRED that the expenses have been paid by electronic means.