On 18th July 2020, the Greek Parliament has voted for and issued the new L. 4706/2020 which includes beyond other provisions, those referred to the supporting measures regarding the payment of the Income Tax and the Unified Real Estate Property Tax and also the one referring to the settlement of unpaid due debts to support businesses and fiscal tax payers during the Covid-19 crisis.
1.1. Income Tax
Which are the supporting measures regulated under the new Law regarding the payment of Income Tax in Greece?
- Legal entities
Corporate Income tax payment for the tax year 2019, is regulated under the Greek Law 4706/2020 to be made in eight (8) monthly installments providing the legal entities with tax reliefs and benefits.
In particular, the first of the eight installments shall be paid until the last working day of the month following the deadline for the submission of the Corporate Income Tax Return, whereas the other seven installments shall be paid until the last working day of the next 7 months. For the Corporate Income Tax Returns the deadline for their filing of which has been extended up to 29th July 2020, pursuant to the provisions of the Ministerial Decision no. A. 1156/2020, the first installment of the Corporate Income Tax is payable until the last working day of July 2020, while each of the following installments is payable until the last working day of the next 7 months. - Individuals
Personal Income tax payment for the tax year 2019, shall be made in eight (8) equal monthly installments, with the first installment to be payable until the last working day of July 2020, whereas each of the rest installments shall me made until the last working day of the next 7 months. The tax payment for the tax payers participating in legal entities keeping single-entry books, shall be completed in 6 equal monthly installments; the first installment shall be paid until the last working day of September 2020, whereas each of the other 5 installments shall be paid until the last working day of the next 5 months.
Under the condition that the tax due coming from the timely filing of the tax return, is paid in a single lump sum within the deadline of the payment of the first installment,
taxpayers may benefit from a 2% discount on the total amount of tax and any other settling debt.
1.2. Unified Real Estate Property Tax
Which are the supporting measures regulated under the new Law regarding the payment of Unified Real Estate Property Tax in Greece?
For the year 2020, in the case of issuance of the tax assessment in September 2020, the payment of the Unified Real Estate Property Tax shall be made in 6 installments; the first of them shall be paid until 30th September 2020, whereas the last installment until the 26th February 2020.
2. Unpaid due debts
What does the new Law prescribe regarding the settlement of unpaid due debts of the taxpayers?
It is provided that the unpaid due debts of the taxpayers, payable till the 31.12.2015, shall be settled with existing or future claims the tax authorities have against them upon the entry into force of L. 4706/2020.
3. Implementation of e-books and e-invoicing in Greece
Greece is adopting a new system regarding the implementation of e-invoicing and maintaining e-books
Based on the Ministerial decision A. 1138/2020, e-books are introduced for all entities that are obliged to apply the provisions of the Greek Accounting Standards. More significantly, those entities are obliged to transmit data to the Independent Authority of Public Revenues (A.A.D.E.), regardless of the type of the company (indicatively S.A., limited liability, private capital, limited or general partnership and others, as well as branches).
The data transmission is done electronically to A.A.D.E. via:
- E-invoicing services providers
- The business management software (commercial/accounting, ERP) used and interconnected with A.A.D.E. through a relevant interface or
- (only for specific cases) a special form provided by A.A.D.E. or
- Via fiscal electronic devices for retail sales.
*Further developments will be soon announced by A.A.D.E.
