2019 Income Tax Returns What you need to know
The taxis platform for the submission of tax returns for income earned in 2019 opens on 31/03/2020.
Employees, pensioners and professional farmers must complete the minimum percentage of electronic receipts to secure a tax deduction ranging from 1,900 to 2,100 euros. This percentage is: 10% for income up to 10,000 euros 15% for income from 10,001 up to 30,000 euros and 20% for income from 30,001 euros and over.
For businesses, income tax rate for 2019 is reduced from 28% to 24%.
Tax on dividends is reduced from 10% to 5%.
The amount of the advanced payment of tax for those who earn income from business activity, is at 50%. An advanced payment of tax of up to 30 euros is not established.
Those who filed a business activity commencement for the first time as of 01/1/2017 are exempt from business tax for five years (from the commencement of operations).
Taxpayers with issue notes for services will be taxed based on the tax bracket of employees – retirees and will be entitled to a tax deduction of 1,900 – 2,100 euros.
Entrepreneurs who are three years away from retirement are excluded from the business tax. The 65th year is considered as the retirement age.
Retirees aged 65 and over have a 30% reduction in presumptions of living.
Businessmen in inaction: are exempt from the business tax which amounts up to 650 euro.
Expenses that have been made electronically will be pre-filled in the tax returns and specifically in the forms E3 (Statement of Financial Data from Business Activity) and E1 (basic income tax return form of natural persons) which include all kinds of income and earnings, as these are depicted in the same form.
It is noted that in the joint tax returns of spouses or parties to a civil partnership, two IBAN numbers are filled in by the taxpayer and the spouse or the parties to the civil partnership respectively, as a separate certificate is issued and separate tax refunds are made.
In case of a joint account of the spouses or the parties to the civil partnership, the same IBAN number can be completed by both. In the case of married taxpayers who have announced their choice to file a separate tax return, in the case of civil partnership agreements as well as in the case of unmarried couples, either an individual or joint IBAN account number should be filled in.
The filling in of the IBAN number is mandatory, except for the cases of taxpayers who are residents abroad and taxpayers who do not have a bank account. In these cases, the indications “I do not have an IBAN account” and / or “Resident Abroad’ must be filled in.