Certain provisions of the Assessment & Collection of Taxes Law 4/78 were amended by Law 126(1) of 2020 and were published in the Official Gazette on 20.08.2020.
The main changes are the following:
As from the tax year 2020 all individuals having gross income that falls under Article 5 of the Income Tax Law, irrespective of the amount, are obliged to file a tax return and pay any tax due by the 31st of July following the tax year in question. Previously the obligation to file a tax return was only for those having an annual gross income of more than €19,500. For persons that are obliged to prepare financial statements the deadline for filing the tax return extends to 15 months ahead from the end of the tax year. In this case, the due payment date is the 1st of August following the relevant tax year.
The Council of Ministers is empowered to issue decrees by which the criteria for individuals with gross income of less than €19,500 will be exempted from the obligations to file a tax return will be specified.
The Commissioner of Taxation has the power to request from any person, his/her spouse and of any dependants a capital statement for a period specified in a notice. This period should not exceed 6 years unless a longer period is justified i.e. in cases where there might be fraud or wilful default.
A new provision has been introduced according to which taxpayers who filed their tax returns in time can file revised tax returns only within 3 years from the due filing date and under certain conditions;
a. To claim a relief, deduction or tax credit or
b. Correction of error or
c. For purposes of consistency with the Tax Law.
It should be noted that a revised tax return cannot be filed during a tax examination.
The new due date for filing the above form is the last day of February of the year following the tax year. A clarification is also made that emoluments include the deemed benefit from loans provided to directors/shareholders.
A new provision has been introduced in the Law whereby the audits can be carried out without the prior notice of the Commissioner of Taxation.
Certain business activities should accept credit cards as a method of payment. These business activities will be mentioned in a decree to be issued by the Council of Ministers.
Tax refunds will not be issued under certain circumstances.