dose

At the end of April, the curtain of this year’s tax declarations is expected to finally open, while on the weekend of April 6-7, approximately 7 million property owners will see the new ENFIA bill.

The delay of the premiere of the tax returns does not affect the deadline for submitting the returns and paying the first installment of the tax. Taxpayers have a deadline to submit their declarations until June 30, 2024, while the first installment of the tax must be paid by July 31, 2024. In the event that the deadline for submitting the declaration is extended to a date later than the deadline for payment of the first installment , the first two installments are paid by the due date of the second installment, i.e. by the end of August.

This year, almost 1 million taxpayers with incomes exclusively from wages and pensions will neither need to fill out nor submit their tax return as the AADE will do it for them, which will also have the “Ravasaki” ready with the tax. For approximately 700,000 freelancers and self-employed persons, the Tax Office is tailoring a “suit” with the minimum presumptive income which they will see pre-filled in the E1 form of the declaration and while they will have the possibility to declare a lower taxable income, the tax they will be asked to pay will be calculated with based on the highest imputed income. For the first time, hundreds of thousands of professionals will pay half the filing fee or be exempt from paying it.

Changes

With time counting down to the new annual appointment of around 9 million taxpayers with the tax office, changes to this year’s tax returns will see:

1. Freelancers, self-employed, sole proprietorships. This year’s tax return holds surprises for thousands of professionals. AADE has already started calculating imputed incomes based on the changes in the tax framework of 700,000 professionals which are applied from the incomes they earned in 2023. The amounts of imputed incomes will be pre-populated in the tax return. This means that taxpayers, when completing their declaration, will see the minimum taxable income determined by AADE. This code will be “locked”. That is, taxpayers will not be able to step in and change him. Based on the data obtained by AADE from myDATA, the codes of the E3 form with income and expenses will be pre-filled but “open” for corrections. Professionals have the option to declare a lower taxable income but the tax they will be asked to pay will be calculated based on the deemed income.

Objection

Those who believe they are wronged by the new presumptive taxation system will be able to challenge the tax by submitting an objection on a new platform prepared by AADE requesting a tax audit in order to prove that their real income is less than the presumptive income. The platform is expected to be activated by the summer.

End vocation

Upheavals to the self-employed and sole proprietorship taxation system bring an end to four-speed pretense in tax returns. With this year’s tax return, the tax-paying fee that taxpayers will be asked to pay 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 free profession 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 legal entity.

– 800 euros for legal entities that carry out a commercial business and have their headquarters in tourist locations and in cities or villages with a population of up to 200,000 inhabitants.

– 1,000 euros for legal entities that run a commercial business and have their headquarters in cities with a population of more than 200,000 inhabitants.

2. Employees – pensioners. Approximately 1 million employees and pensioners are exempt from this year from completing and submitting their tax return as AADE will not only complete and submit their tax return within the prescribed period but will have the settlement statement ready. These taxpayers will be notified by email by AADE for the automatic completion and finalization of their declaration. As defined in the draft law with the Tax Procedure Code, the determination of the tax is also done with a tax declaration that has been pre-filled automatically based on all the data available to the Tax Administration and has been communicated to the taxpayer. As long as the taxpayer does not object to the content of the declaration by the deadline for its submission, it is automatically finalized (domestic tax assessment). It is noted that today only the prefilling of income from wages and pensions is applied, but the automatic finalization of the declaration does not apply.

Tax, installments, discounts

The payment of income tax will be made again this year in 8 monthly installments with the first to be paid by July 31, 2024 and the last by February 28, 2025. Individuals who will pay the tax in one lump sum by the deadline for payment of the first installment, will earn a 3% tax rebate.