Easier tax returns for foreign residents
A Circular was issued concerning the possibility of submitting an income tax return for natural persons who are tax residents abroad, who do not have a postal address in Greece and have not appointed a tax representative in the AADE tax register in accordance with the provisions of paragraph 1 of article 8 of Law 4987 /2022 (A'206).
- With the provisions of article 8 of Law 4987/2022, it is defined that a taxpayer who does not have a postal address in Greece, is obliged to appoint a representative with a tax residence in Greece, for the purposes of compliance with the formal obligations, according to the Code. The Governor, by his decision, determines the necessary details for the implementation of the first paragraph.
- Also, according to the explanatory statement on article 8 of Law 4174/2013, the taxpayer who does not have a postal address in Greece and has an obligation to pay tax or any other tax obligation arising from the Code, must appoint a representative with tax residence in Greece so that the taxpayer and the administration can communicate and cooperate in the most efficient way.
- With the POL.1283/2013 (B'3367) Decision of the General Tax Administration, it is stipulated that the person appointed as a tax representative bears no responsibility for the fulfillment or non-fulfillment of the taxpayer's tax obligations (par. 2 of article 1).
- With the provisions of paragraph a) of paragraph 2 of article 5 of the KFD, it is stipulated that the notification of an act concerning a natural person is carried out if it is notified electronically in accordance with the relevant provisions of Law 4727/2020 (A' 184) or to the account of the due to a person or his legal representative or his tax representative in the information system of the Tax Administration, which is followed by an electronic notification to his declared e-mail address.
- The provisions of paragraph 1 of article 67 of Law 4172/2013 (A'167) stipulate, among other things, that the taxpayer who has reached the age of 18 is obliged to declare all his income, taxable with any way or exempted, to the Tax Administration electronically.
- In A.1025/2022 Decision of the Governor of AADE (B'765) it is defined, among other things, that natural and legal persons, as well as legal entities, which are certified users of the electronic services of the Independent Public Revenue Authority, must update in the myAADE digital portal, in the "Register and Contact" option and in the "Contact Details" section, their electronic contact details, i.e. their email addresses (e-mail) and telephone numbers (Mobile and Landline). These data may, at the option of the interested party, be synchronized with the National Contact Register (NRC).
- Furthermore, with article 5 of A.1034/2022 (B' 1098) Decision of the Governor of AADE, regarding the type and content of the personal income tax return for the tax year 2021, it is stipulated, among other things, that the taxpayer's information is required to be updated, since they are also used as contact information by the Tax Administration.
- After the above, it is clarified that natural persons tax resident abroad who have updated their information in accordance with the provisions of A.1025/2022 and A.1034/2022 Decisions of the Governor of the AADE, may submit their income tax returns, even if they do not have a postal address in Greece and have not appointed a tax representative in accordance with the provisions of paragraph 1 of article 8 of the Tax Code and POL.1283/2013, as the submission of the income tax return is a substantial tax obligation that derives from the provisions of article 67 of the Civil Code is fulfilled by them.
In addition, the circular (E. 1008/2023) makes it clear that no fines are imposed on taxpayers who submit a late tax return, while they were not required to submit it, according to the law. Indicatively, these taxpayers are either foreign residents who do not obtain real income in Greece, or Greek residents who do not obtain real or imputed income. According to the circular, fines imposed, in similar cases, from 1.1.2020 onwards are cancelled.
For more information you can contact us at 231 309 7575 or gx[email protected].