On 18 July 2020, the Greek parliament passed the new law no. 4706/2020. In addition to other provisions, this law also contains regulations on the payment of income tax and the uniform real estate property tax. Moreover, law 4706/2020 also contains provisions on how to pay unpaid debts due. The measures will support companies and taxpayers during the COVID-19 crisis.

1.1 Income Tax: What are the relief measures regulated under the new law concerning the payment of income tax in Greece?

Legal Entities
Under law 4706/2020, corporate income tax payment for the tax year 2019 can be made in eight monthly instalments.

The first of the eight instalments shall be paid by the last working day of the month following the deadline for the submission of the corporate income tax return. The other seven instalments shall be paid by the last working day of the following seven months.

For corporate income tax returns whose deadline for filing has been extended up to 29 July 2020 by the provisions of ministerial decision no. A. 1156/2020, the first instalment is payable by the last working day of July 2020. Each of the following instalments is payable by the last working day of the following seven months.

Individuals
Personal income tax for the tax year 2019 shall be payable in eight equal monthly instalments. The first instalment is payable by the last working day of July 2020 and each of the remaining instalments is payable by the last working day of the following seven months.

The tax payment for tax payers participating in legal entities keeping single-entry books shall be completed in six equal monthly instalments. The first instalment shall be paid by the last working day of September 2020, with each of the remaining instalments payable by the last working day of the following five months.

On condition that the tax due from the timely filing of the tax return is paid in a single lump sum before the deadline for payment of the first instalment, taxpayers may benefit from a 2% discount on the total amount of tax and any other settling debt due, explain the Ecovis experts.

The Greek government has passed a legislative act of tax measures. The relief is intended to ease the consequences of the corona pandemic. We can support you with the implementation locally and will keep you up to date on any further changes planned

1.2 Uniform Real Estate Property Tax: What are the relief measures regulated under the new law concerning payment of the uniform real estate property tax in Greece?

For the year 2020, where the tax assessment is issued in September 2020, payment of the uniform real estate property tax shall be made in six instalments. The first instalment shall be paid by 30 September 2020, with the final instalment due by 26 February 2021.

2. Unpaid Due Debts: What does the new law prescribe in terms of the settlement of taxpayers’ unpaid due debts?

Taxpayers’ unpaid due debts payable to 31 December 2019 shall be settled with existing or future claims the tax authorities have against them when law 4706/2020 comes into effect.

3. Implementation of E-books and E-invoicing in Greece: Greece is adopting a new system for the implementation of e-invoicing and maintaining e-books.

Based on ministerial decision A. 1138/2020, e-books will be introduced for all entities 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 company (i.e. S.A., limited liability, private capital, limited or general partnership and others, as well as branches).

The data transmission is made electronically to the Independent Authority for Public Revenue (A.A.D.E.) via:

• E-invoicing services providers
• Business management software (commercial/accounting, ERP) used connected to A.A.D.E. through a relevant interface
• A special form provided by A.A.D.E. (only for specific cases)
• Fiscal electronic devices for retail sales.

For further information please contact: ECOVIS HELLAS LTD, Athens, Greece