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Tax-i 138: Clarifications on Income Tax Statements for 2018 - Changes in Mass Media Ads

April 2018

A. MODIFICATIONS TO E1 FORM AND OTHER ISSUES

Expenditure on goods and services
Code 049 is re-activated (and a corresponding 050 code is added to the spouse's field), indicating the amounts paid for expenditure on the purchase of goods and the provision of services by electronic means of payment in order to guarantee the indirect tax-free allowance and avoid the imposition of fines.

The amount of the costs is stated individually by each spouse, but one spouse may cover the tax of the other one if the latter does not have the necessary tax expenses.

In order to facilitate the calculation of the amount of expenditure, the Tax Administration posts the electronic information at its disposal and the taxpayers having the burden of proof fill in the amounts that meet the required conditions themselves.

Expenses that have been paid by electronic means but are not included in the uploaded information, are included if they meet the same conditions and are proven by the taxpayer by any appropriate means.

Taxpayers who are not required to use electronic means of payment (e.g. over 70 years of age) simply indicate the required amount of expenditure and keep the relevant receipts.

Finally, the tax reduction is for those who have income from salaried services and pensions and does not concern taxpayers with other sources of income.

Removal of medical expenses
Codes 051-052 showing medical costs, which do not reduce the tax but are declared together with the other costs of the taxpayer under codes 049-050, are abolished.

Profit from transfer of securities by foreign tax residents
Profits from the transfer of securities of a tax resident in a country with a double taxation agreement are declared (in codes 659-660) if he/she is obliged to file a statement for another reason.

Profits from bonds
Profit gained from maturing bonds (acquisition cost vs nominal value) is also declared in the same codes.
The above income is exempt from tax but is subject to a solidarity levy.

Statements reserved
In the case of submitting statements with reservation, within 30 days of the date of submission of the statement, taxpayers are required to submit to the tax office the necessary supporting documents, which substantiate their claims and the reason for the reservation.
Statements with reservation shall be cleared within 90 days of submission.
If the required supporting documents are not produced within the 30-day period referred to above, statements shall be cleared, without taking into account the reservation.

Payment of taxes by card
The possibility of paying taxes with cards was put into operation at Taxisnet. Specifically, payment of certified individual debts (by natural and legal persons) to the tax authorities can be made with the use of payment cards, through Taxisnet's online service on the Independent Authority for Public Revenue (IAPR) web portal.

Notification of pending audit orders
All pending tax audit orders (or pending invitations for the provision of information) that have not yet been communicated, must be communicated by May 8, 2018. After that date, all audit orders must be notified to the taxpayer within 5 working days of their issue.


B. CHANGES IN THE ADVERTISING MARKET OF MASS MEDIA

Since 1.2.2018 (Law 4532/2018), the conduct and pricing of advertisements by Mass Media have been redefined. Specifically:

Written order from the advertised
For the transmission or publishing of advertisements, the signing of a written order to the medium by the advertised or an authorized advertiser is required.
The order specifies the value of the transaction according to the pricelist of the medium, including any deductions, the precise definition of the space or time of display, as well as the legal charges.

Invoice content
For all promotional items, the medium issues an invoice in the name of the advertised with a specific indication of the time and extent of the advertisements for each advertised party. The invoice should indicate the price, the value of the service provided and any discounts given by the medium, as well as the amount of V.A.T. and any special tax payable.

If an advertiser is involved, the invoice is issued by the medium in the advertiser's name and necessarily corresponds to the publishing or transmission of advertisements or packages for each advertised party separately. A copy of the invoice is also sent to each advertised concerned by the end of the month following its issuance.

Turnover discounts
Any turnover discounts and other forms of discounts based on targets with credit invoices issued at a later date will only be provided in accordance with a prior written agreement between the medium and the advertised -as well the advertiser, if there is one- which will have to be concluded before the issue of the relevant invoices on which the discount is granted or the credit document is issued.

Discount of business expenses
The advertising costs of the advertised are treated as deductible business expenses only if the relevant operations are carried out in accordance with the aforementioned procedure.
    
Calculation of advertising taxes
All taxes, including special TV advertising tax, are calculated on each invoice for 80% of the value obtained after the deduction of any discounts granted, with the exception of V.A.T. only, calculated for each invoice on 100% of the value after deduction of any discounts granted.

[In accordance with the previous provisions (until 31 January 2018), the special tax was calculated on the basis of the nominal price on the price list without taking into account any benefits, discounts or commissions and the nominal price was reduced by 20%, regardless of the actual discount, only when an advertiser was involved.]


You can download the pdf file here.

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