On February 4th 2021, the Greek Parliament voted the Draft Bill introduced by the Ministry of Finance for addressing the ongoing multiple impacts on taxation due to COVID-19 Pandemic. In particular, the main tax measures which have been proposed are the following:
Extension of the measure for rent reduction from commercial rental agreements for January and February 2021.
Self-employed and companies, whose operations were suspended or prohibited in accordance with governmental decision, are fully exempted (100%) from the payment of their rent due for the months of January and February 2021.
Financial assistance provided to the lessors because of the non-payment of the rents:
• Any rental income from immovable property, which is not received by the lessors according to COVID measures, will not be taxed.
• Any individual, who has received a reduced income from immovable property by 30% or 40% according to COVID measures, has the right to deduct from his total tax liabilities due at 31/07/2020, an amount equal to 20% on 60% of the rent amount due for the said months.
• The landlords, who have received a reduced income from immovable property by more than 40% from November 2020 and onwards, will be refunded by the Greek State. The latter will pay an amount equal to the reduction suffered in their bank accounts.
• On the contrary, the individuals, who have received no income from immovable property for the months of January and February 2021 will receive a compensation equal to 80% of the total rent due.
• A compensation equal to 60% of the rent due will be paid to the legal entities who have not received any income from immovable property during January and February 2021.
• All the foregoing amounts paid by the Greek State will not be considered as income and will be tax free.
Suspension of deadlines for debt instruments
• Postdated checks, bills of exchange and promissory notes carrying a settlement date between 02.01.2021 and 25.01.2021 shall not be recorded in Teiresias System, if they are going to be settled within 75 days from their expiration date or their reference to the drawer.
• Settlement deadlines of such payment instruments from 25.01.2021 to 28.02.2021 are suspended for 75 days.
These provisions apply to all businesses that have closed under a Gonvermental Decision, businesses that have been extremely affected by COVID-19 pandemic or new businesses incorporated from 01.01.2020 and onwards, under the only condition that their Activity Code (KAD) is deemed as affected by COVID-19.
Deadline suspension for tax returns of foreign tax residents for fiscal year 2019.
The deadline for the suspension of tax return for FY 2019 concerning the income of non-Greek tax residents is suspended until 30.06.2021. The Tax Authority will not impose penalties for late submission. In addition, any penalty that has already been imposed shall be written off accordingly.
For additional information with respect to this Alert, please contact the following: