2020 tax returns: What changes this year

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2020 tax returns: What changes this year

It is estimated that the TAXISNET system will open earlier compared to last year, at the end of March, for the filing of the 2020 tax declarations by 8.9 million taxpayers and the assessment of their revenues from 2019.

 

The process for the electronic submission of tax declarations has been simplified. If the taxpayer resides in his own home or in a home which was provided free of charge, he has movable property which has not changed in 2019 (e.g. the taxpayer has not changed his car), the required steps are simple and the process easy, since most of the information which must be declared this year, is prefilled under the respective codes by the Directorate of Electronic Governance of the Independent Authority of Public Revenue.

 

Option for spouses to file separate income tax declarations.

 

Married taxpayers are entitled to file separate tax declarations this year.

 

They must however submit a request on the electronic platform of the Independent Authority of Public Revenue (AADE) until February 28.

 

This request will help avoid mistakes and simplify the submission of the tax declarations, as well as the return of taxes.

 

It should be noted that in the joint declarations of spouses or common-law partners, since the assessment and the return of taxes is done separately, two IBAN numbers must be provided for the taxpayer and his spouse or the common-law partners, respectively.

 

If the spouses or common-law partners have a joint account, the same IBAN number may be provided by both. In the cases of married taxpayers, who have informed the authority of their choice to file separate declarations, common-law partners as well as single individuals, the IBAN of their personal or joint account must be filled in.

 

Declaring the IBAN number is compulsory, apart from the cases of Greeks living abroad and taxpayers who do not own a bank account. In these cases, the indications “I have to IBAN” and/or “Living Abroad” must be filled in.

 

The platform for the submission of the relevant applications is already open and the Independent Authority for Public Revenue has provided answers to the most common questions from taxpayers in a 20 Q&A Guide:

 

How can I inform them of my decision to file a separate income tax declaration?

 

There is a special electronic application on the website www.aade.gr where you can make such notification either with your own access codes or by an accountant – tax specialist who has been duly authorized with his access codes.

 

If neither of the spouses declares his/her decision to file a separate income tax declaration until February 28, 2020, what will happen?

 

In this case, the spouses will file a joint declaration for the year 2019.

 

In the cases of a joint declaration for both spouses, will there be a tax be offset between spouses and a notice of assessment issued in the name of the spouse?

 

No, the taxes will be assessed separately and there will be no offset of debit and credit amounts between spouses.

 

Are subventions affected if the spouses file separate declarations?

 

No, subventions are not affected if the spouses file separate income tax declarations.

 

Is it compulsory for spouses who have a difference tax residence to file separate income tax declarations?

 

No, it is not compulsory to file separate income tax declarations because there is already a provision for separate tax treatment in the joint declarations of spouses who have a different tax residence.

 

How is the main residence declared in the Ε1 when separate declarations are filed?

 

The main residence is declared in table 5 of the Ε1 form under the relevant codes for a main residence. Each spouse fills in his/her ownership percentage in the case of an owned residence, his/her percentage as lessee in the case of a leased residence and his/her percentage in a free cession, respectively.

 

If separate declarations are filed, how is the main residence declared in the Ε1 form when one the spouses has no ownership or usufruct percentage?

 

The spouse who has no ownership or usufruct percentage fills in table 6 the indication “co-habitation with spouse”. The other spouse does not need to fill in any indication.

 

How are the children declared as dependants in separate declarations?

 

The children born from a marriage between the spouses as well as any recognized children are declared as dependants of both spouses.

 

Who declares the income of a minor child from the marriage of the spouses in separate income tax declarations when the child is not obliged to file an income tax declaration?

 

The income of the minor child which is not taxed in the child’s name is added to the income of the parent who has the biggest income and is declared by this parent only.

 

Who is liable for the living and acquisition criteria in the separate income tax declarations of spouses?

 

In separate income tax declarations of spouses, there is no family income to cover the individual criteria of each spouse, since the living and acquisition criteria burden each spouse separately.

 

Regarding the possibility of covering the criteria by using the capital, no incomes may be invoked from the separate declaration of the other spouse.

 

In separate income tax declarations, can one spouse transfer the remaining amount of receipts to the other spouse?

 

No, there is no such possibility.

 

What is the deadline for the notification of the spouses’ choice to file a separate income tax declaration?

 

The deadline ends on February 28 of each year.

 

After February 28, can the choice for the submission of separate income tax declarations by revoked?

 

No, it cannot be revoked for the year which it concerns.

 

Which of the two spouses can inform the authorities of their choice to file separate income tax declarations?

 

Either of the two spouses or both.

 

Must the notification of the choice to file separate income tax declarations be made every year until February 28?

 

Yes, it must be updated every year by at least one of the two spouses until said deadline, otherwise a joint declaration must be filed.

 

I am getting married in March 2020 (after the end of the deadline for the submission of the notification). Can I file separate income tax declarations for the tax year 2019?

 

Yes. Especially for these cases the application will remain open until the end of the deadline for the timely submission of income tax declarations.

 

I am getting married in February 2020 and I will declare my marriage in the records of the Public Revenue Agency after February 28, 2020. Can I file separate income tax declarations for the tax year 2019?

 

Yes. Especially for these cases the application will remain open until the end of the deadline for the timely submission of income tax declarations.

 

How many times can I change my selection for the submission of separate income tax declarations if I get married after February 28, 2020?

 

The declaration is made once a year.

 

Does the option for the submission of separate income tax declarations apply to common-law partners?

 

No, it does not since the law has already given them the possibility of filing joint or separate declarations.

 

Must each spouse have his/her own access codes to file separate income tax declarations;

 

Yes, the spouse who does not already have access codes must acquire them to be able to file her own declaration.

 

Newsroom, CNN Greece

February 8, 2020

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