Four changes concerning the modernization of tax legislation were announced by the Minister of National Economy and Finance Kostis Hatzidakis.

The four changes concern gratuities, the abolition of the pretense fee, the determination of a fixed date for the submission of tax returns, as well as a modern administrative model for AADE, while, among other things, the possibility of a 2nd renewal of the term of office for the administrator, G. A splash.

From March 15 to July 15 – Discount from 2% to 4%

Regarding the submission of tax returns, Mr. Hatzidakis pointed out that the date will be fixed, from March 15 to July 15and will not change every year so that all interested parties know when the submission starts and when it ends.

In fact, the earlier taxpayers submit their returns, the bigger tax deduction they will get if they pay the income tax in one lump sum by July 31.

At the same time, a discount is provided (from 2% to 4%) for those who pay the full amount of income tax by July 31 of each year and if they submit their tax return, as follows:

a) 4% discount for anyone who submits a statement from March 15 to April 30.

b) 3% discount from May 1 to June 15.

c) 2% discount from June 16 to July 15.

In addition, the payment of the tax for both natural and legal persons is made permanent in 8 equal monthly installments, the 1st of which is paid by July 31.

Also, Mr. Hatzidakis noted that from now on the state will not only ask the taxpayers to comply with the deadlines, it will also ask the AADE and all the public bodies involved who will face sanctions., as natural persons.

In this context, for the first time, penalties starting from 2,500 euros are established for natural persons who manage public bodies and who delay or make mistakes in posting data for completing tax returns. Everyone must do their job, said Kostis Hatzidakis.

“It has never happened before in Greece, it is a change of behavior on the part of the public. It has a color of modernization and justice” underlined the minister.

Specifically, the AADE recommends an Electronic Register of Persons Obliged to Submit an Annual Income File for the pre-completion and submission of tax returns. Registration in the Register is mandatory and concerns Government Organizations and services that are required to send data to AADE for the needs of completing tax returns. Through the new electronic register, all the necessary data for the pre-completion and submission of the tax declarations (such as wages from salaried work, pensions, remuneration from business activity, withheld taxes, etc.) will be transmitted to the AADE. Each operator should transmit the data from January 16 to the last working day of February each year.

In case of untimely, inaccurate transmission of the above data to AADE or non-registration in the Register, a fine of 2,500 euros is provided for the persons responsible. As such are considered the heads of legal entities of the State (eg EFKA, EOPYY etc.), for the State the service secretaries, for the Municipalities the general secretaries and horizontally the supervisors for the clearing of the payroll. In case of late transmission, the fine is increased by 50 euros for each day of delay. Finally, in case of late activation of the digital platform by AADE, the fine will be imposed on the Governor of AADE.

Gratuities

Specifying the measures, the Minister of Finance, Christos Dimas, said that as far as tips are concerned, tax-free up to 300 euros is established for what is paid via POS. And he added that they are exempt from insurance contributions. Until today, the taxation of tips was valid from the first euro, i.e. it was taxed like the employee’s salary, explained the Deputy Minister of Finance, Christos Dimas.

At the same time, an anti-abuse provision is introduced for any employers who would think of artificially reducing wages by declaring part of them as tips: In the event of a reduction in regular wages, with a simultaneous increase in tipped wages, the employer will be required to pay a contribution of 22% on the reduction of regular wages.

End of pretense for blocks

Regarding the pretense fee, as it became known yesterday, it will also be abolished for those paid with a block from 2025. The abolition also concerns “block” workers who are employed by up to 3 employers or whose 75% of their income comes from one employer. The repeal applies to 2024 income that will be reported in 2025 and beyond.

New structure at AADE

With the aim of even greater speed and efficiency of AADE, some important changes are underway in its administrative model. Specifically:

– Responsibilities are redistributed between the Governor and the Board of Directors. The Management Council will not be involved in the daily operation of AADE (eg supplies, personnel, etc.), while at the same time it acquires a more institutional role, taking over the institutional control of the Commander and the Deputy Commanders as well as the drafting of annual evaluations of their work.

– 3 positions of Deputy Commanders are created with the aim of assisting the Governor’s work by covering specific areas. The 3 positions concern the following objects:

a) Organization of functions.

b) Legal Affairs.

c) Digital Transformation.

– The possibility for second renewal of the Governor’s term of office.

– The possibility is provided for recruitment of some general managers/directors also from the private sector in areas such as digital transformation and communications.