On 12 December 2016 the draft bill with title “Ptoxeftikos Kodikas, Dioikitiki Dikaiosyni, Teli-Paravola, Oikiothelis apokalypsi adiloton eisodimaton, ilektronikes synallages, tropopoiisseis tou N. 4270/2014 kai loipes diataxeis” was submitted to the Greek Parliament.
This draft bill also includes provisions on the voluntary disclosure of undeclared taxable income. As preliminary remarks (subject to the finalisation of the bill and/or further clarifications from the Ministry of Finance), the key points for Greek tax residents with undeclared income in Greece and/or abroad can be summarised as follows:
- Greek taxpayers will have the possibility to legalise income which has been so far undeclared or not duly/accurately declared (legalisation process called for simplification purposes “Voluntary Disclosure Program” VDP)
- This VDP can cover income for which the obligation to file the initial tax return had elapsed up to 30 September 2016
- The legalisation will be done by way of submission of tax returns (by hand or electronically) by 31 May 2017. The tax due is in principle payable within 30 days from the submission of the tax return.
- The amount of main tax due by the taxpayer within the VDP will depend on the year when the income needed to be declared, and the tax due will be calculated based on the applicable tax scale.
- In addition to the main tax based on scale, an additional tax of 10% (of the main tax due) is levied. This additional tax can be reduced to 8% in case the tax return is submitted earlier, up to 31 March 2017.
- The additional tax of 8% or 10% is then re-adjusted based on a specific table, depending of the calendar year in which the deadline for submission of the initial tax return had elapsed. The older the year, the higher the readjustment rate (e.g. for years prior to 2002 the readjustment rate of the additional tax is 25% while for years after 2010 the readjustment rate of the additional tax is 0%).
- The additional tax can then be further increased depending on whether the taxpayer has an open tax assessment and its stage in the process.
- For amounts declared under the above VDP no further penalties or criminal prosecution for tax evasion will be imposed.
PwC has a specially dedicated team of experts dealing with the above voluntary disclosure allowing for a swift and cost efficient processing.
For more details, please contact:
|Anna-Maria Widrig Giallouraki
PwC, Senior Manager