We note that these provisions apply only when the lessor is a natural person, with the result that all kinds of legal entities are excluded from any beneficial regulation.
As is well known, POMIDA has requested in the most intense way from the Government to put an end to the forced rent reductions, and in their place to legislate the tax reward of voluntary reductions, based on owner-tenant agreements that are in their common interest. Where the primary interest of the landlord is not to risk losing his existing tenant and find himself with a rented property in the midst of the ongoing crisis which, at the end of the summer, unfortunately presented a new serious flare-up…
Thus with a bill of the Ministry of the Interior submitted to the Parliament,for which we are already receiving vigorous protests from owners from all over the country, the forced rent reduction for severely affected businesses (tourism, etc.), as well as their employees who have been suspended from work, will continue for the month of September. But after months of fighting, our proposal to extend the tax relief to voluntary rent reductions was finally partially accepted. With a provision of the new law, it is provided that the owners who will accept a voluntary reduction of their rents will have the right to a deduction of an amount equal to a percentage of 20% on 60% of the rents of those months calculated before the aforementioned reduction, i.e. a fixed rate of 12% on the initial rent, regardless of the rate of reduction they will accept, as long as it is not less than 30%. It has not been clarified which categories of leases are subject to the optional reduction regulation rent, it seems, however, that it will mainly concern commercial enterprises. The conditions for the implementation of the regulation according to the provision submitted to the Parliament:
- There must be an agreement between the lessee and the lessor to reduce the rent by at least 30%, for the months of September to December 2020.
- Submit this agreement to the application of the AADE for the declaration of real estate lease data, and
- The remaining rent must be paid to the lessor within the agreed payment deadline, and at most within the month it concerns.
In addition to the above professional leases, the optional reduction of at least 30% of the total leasecan still be agreed upon:
A. For contracts lease of main residence, in which the lessee is an employee or spouse etc. of an employee in the above businesses, whose employment contract has been temporarily suspended,
B. For real estate lease contracts to cover the housing needs of a child – a dependent member,who attends a higher education institution outside his place of permanent residence, as long as at least one parent is an employee of an affected company and whose suspension has been suspended temporarily the employment contract and
C. For leases of primary residence of seafarers whose seafaring contract is still suspended, starting from the month of October 2020.
The manner, time, as well as any more specific matter will be determined by a decision of the Commander of the AADE.
What landlords will “gain” from the optional reductions they will agree, if they wish, with their tenants: The proposed provision extends the support measures for landlords, strong>and in the optional reduction of the rent of the above categories of leases upon agreement of the lessor (natural person only) and the lessee under the terms and conditions defined in the above article. So they win:
* The right to discount an amount equal to a percentage of 20% on 60% of the rents of these months, calculated before the above reduction, i.e. a fixed rate of 12% on the initial rent, regardless of the rate of reduction they will accept, as long as it does not fall short of 30%, through automatic offsetting with upcoming tax obligations (ENFIA, income tax, etc.)and
* For the first time, the dependence of the rent reduction on the condition of timely payment of the due rent, which was also a persistent request of POMIDA!
Here are articles 3 – 5 of the new bill concerning these regulations, together with their explanatory statement:
Regarding the exemption from the obligation to pay 40% in professional leases, the following are defined in detail:
1. It is also extended for the month of September 2020, notwithstanding the texts provisions on leases, the exemption from the obligation to pay 40% of the total rent: to the lessees of a business lease for the establishment of businesses, who continue to be financially affected due to the appearance and spread of the coronavirus, to the lessees of the main residence, who are employees or spouses or the other part of a cohabitation agreement of an employee in an affected company, whose employment contract has been temporarily suspended due to the measures to avoid the spread of the coronavirus, on property lease agreements to cover the housing needs of a child – a dependent member, who attends a higher education institution outside of his place of permanent residence, as long as at least one parent is an employee of a company that is financially affected due to the appearance and spread of the coronavirus and whose employment contract has been temporarily suspended, to tenants of the main residence, who are seafarers, whose seafaring contract ends in suspension, for as long as the chartering contract is still suspended. ‘[Article 3]
Explanatory report
On Article 3
By par. 1 is extended for the month of September 2020 as well, the possibility for tenants of commercial leases to set up businesses, who are still financially affected due to the appearance and spread of the COVID-19 corona virus, to be exempted from the obligation to pay 40% of the total rent in derogation of the written provisions on leases, in accordance with the provisions of the second and third paragraphs of par. 1. The same extension also applies to lease contracts of a main residence, in which the lessee is an employee or spouse or the other party to a cohabitation agreement of an employee in a company of the first and second paragraphs, whose employment contract has been temporarily suspended due to the measures to avoid the spread of the COVID-19 coronavirus, in compliance with the conditions of par. 2 of the second article of the Legislative Content Act from 20.3.2020, in order to provide the necessary facilities for the management of the adverse consequences of COVID-19.
Paragraph 2 extends for the month of September 2020, the possibility of exemption from the obligation to pay 40% of the total rent in derogation of the provisions on leases for real estate lease contracts to cover the housing needs of a child – a dependent member, who attends a higher education institution outside his place of permanent residence, as long as at least one parent is an employee in his company of the first paragraph of par. 5 of the second article of the Legislative Content Act from 20.3.2020, which was ratified by article 1 of Law 4683/2020, and whose employment contract has been temporarily suspended due to the measures to avoid the spread of the COVID-19 coronavirus -19, in order to provide the necessary facilities to manage the adverse consequences of COVID-19.
With par. 3 it is extended for the month of September 2020, the possibility for seafarers whose chartering contract is suspended to be exempted from the obligation to pay 40% of the total rent of the main residence for as long as the chartering contract is still suspended, by way of derogation from the written provisions on charters, in order to provide OL necessary facilities to manage the adverse consequences of COVID-19.
Provision of the bill
Article 3
Extension of the rent reduction of professional leases, leases of main residence, leases of dependent members – students and seafarers’ leases
- Paragraph 5 of the second article of the Legislative Content Act from 20.3.2020 (A’ 68), which was ratified by article 1 of Law 4683/2020 (A’ 83) and which was amended by par. 1 of Article 15 of Law 4690/2020 (A’ 104), is replaced as follows:
“5. The lessee of a business lease for the establishment of a business for which special and extraordinary measures of suspension or temporary prohibition of operation have been taken during the months of March, April, May or June 2020 for preventive or repressive reasons related to the COVID-19 coronavirus, is exempt from the obligation to pay 40% of the total rent also for the month of June 2020, in derogation of the written provisions on leases, in accordance with the provisions of the second and third paragraphs of par. 1. The lessee of a business lease to establish a business, which continues to is financially affected due to the appearance and spread of the COVID-19 coronavirus, is exempted from the obligation to pay 40% of the total rent for the months in which it is affected and at the latest until the month of September 2020, in derogation of the written provisions on leases, according to the ones defined in the second and third paragraphs of par. 1. By decision of the Minister of Finance, after a recommendation by the Governor of the Independent Public Revenue Authority (AADE), the affected businesses of the previous paragraph are determined by sector and by month, as well as any other necessary detail for the implementation of this. The provisions herein also apply to principal residence lease contracts, in which the lessee is an employee or the spouse or the other party to a cohabitation agreement of an employee in a company of the first and second paragraphs, whose employment contract has been temporarily suspended due to the measures to avoid his dispersion of the COVID-19 coronavirus, subject to the conditions of par. 2”. - Para. 3 of article 3 of Law 4684/2020 (A’ 86), which was added by par. 2 of article 15 of Law 4690/2020 (A’ 104), is replaced as follows:
“3. The provisions in par. 1 are also valid for the month of June 2020, as long as at least one parent is an employee of an enterprise of the first paragraph of par. 5 of the second article of the Legislative Content Act of 20.3.2020 (A’ 68), which was ratified by the article of Law No. 4683/2020 (A’ 83), and whose employment contract has been temporarily suspended due to measures to avoid the spread of the COVID-19 coronavirus, or at the latest until the month of September 2020 if at least one parent is an employee in an enterprise of the second paragraph of par. 5 of the above article, as determined by sector and month by the decision of the same article, and whose employment contract has been temporarily suspended due to the measures to avoid the spread of the COVID-19 coronavirus, in compliance and the other conditions of par. 2 of the same article.” - Subpar. 4.a. of the sixty-third article of the Legislative Content Act of 30.3.2020 (A’ 75), which was ratified by article 1 of law 4684/2020 (A’ 86) and which was added by par. 3 of article 15 of the 4690/2020 (A’ 104), is replaced as follows: “4.a. Seafarers whose chartering contract is suspended in accordance with par. 2 or spouse or the other party to a cohabitation agreement are exempted from the obligation to pay 40% of the total rent of the main residence for as long as the chartering contract is still suspended and at the latest until the month of September 2020, in derogation of the written provisions on leases. With the decision of the second paragraph of par. 4, the matters of application of this are also regulated.”
- An optional reduction of at least 30% of the total rent is foreseen, in derogation of the written provisions on leases of professional leases to establishment of businesses, which are still financially affected due to the appearance and spread of the coronavirus, starting from the month of September 2020 and at the latest until the month of December 2020, as long as there is a relevant agreement between the lessee and the lessor and on the other hand a corresponding electronic declaration to the A.A.D.E., of the tenants of the main residence, who are employees or the spouse or the other party to a cohabitation agreement of an employee in an affected company, whose employment contract has been temporarily suspended, due to the measures to avoid the spread of the coronavirus, starting from the month of September 2020, on real estate lease contracts, starting from the month of September 2020, to cover the housing needs of a child – a dependent member, who attends a higher education institution outside his place of permanent residence, as long as at least one parent is an employee of an affected enterprise and whose employment contract has been temporarily suspended, of the main residence of seafarers, whose seafaring contract is still suspended, starting from the month of October 2020. [article 4]
Exploratory statement
About article 4
Paragraph 1 provides for an optional reduction for a percentage of at least 30% of the total rent of professional leases for the establishment of businesses, which are still financially affected due to the appearance and spread of the COVID-19 coronavirus, in derogation of the written provisions on leases, for the months of September, October, November and December 2020 , as long as there is a relevant agreement between the lessee and the lessor and therefore, as long as a corresponding declaration is submitted to the AADE. In order to avoid a disproportionate burden on the lessor, it is determined that for the application of the optional extension of the rent reduction, the payment of the rent must take place within the agreed or usual deadlines. The purpose of the provision is to provide the necessary facilities to manage the adverse consequences of COVID-19.
The optional reduction also applies to leases of a principal residence, in which the tenant is an employee or the spouse or the other party to a cohabitation agreement of an employee in the above businesses, whose employment contract has been temporarily suspended due to the measures to avoid the spread of the COVID-19 corona virus, in compliance with the conditions of par. 2, in order to provide the necessary facilities for the management of the adverse consequences of COVID-19.
Paragraph 2 provides for an optional reduction of at least 30% of the total rent for real estate lease contracts to cover the housing needs of a child – a dependent member, who attends a higher education institution outside his place of permanent residence, provided that at least one parent is an employee of an affected company and whose employment contract has been temporarily suspended due to the measures to avoid the spread of the COVID-19 corona virus, in order to provide the necessary facilities to manage the adverse consequences of COVID-19.
With par 3 an optional reduction of at least 30% of the total rental of the main residence is provided for seafarers whose seafaring contract is still suspended, starting from the month of October 2020, in derogation of the provisions on leases, in order to provide the necessary facilities to manage the adverse consequences of COVID-19. Furthermore, the determination of the manner, time, as well as any more specific matter for the submission of the present statement, by decision of the Governor of AADE is provided.
Arrangement of the bill
Article 4
Optional rent abatement of business leases, principal residence leases, dependent member – student leases and seafarer leases
- In the second article of the Legislative Content Act of 20.3.2020 (A’ 68), which was ratified by article 1 of Law 4683/2020 (A’ 83 ), paragraph 6 is added as follows:
“6. The lessee of a commercial lease for the establishment of a business, which is financially affected due to the appearance and spread of the COVID-19 corona virus, may be exempted from the obligation to pay part of the total rent, which cannot be less than 30% of the total rent for months in which it is affected, starting from the month of September 2020 and at the latest until the month of December 2020, in derogation of the written provisions on leases, in accordance with the provisions of the second and third paragraphs of par. 1. For the application of this requires a relevant agreement between the lessor and the lessee, who submit an electronic declaration to the Independent Public Revenue Authority (AADE) and pay the rent reduced by at least 30% within the agreed or usual deadlines, in accordance with article 595 of the Civil Code. By decision of the Minister of Finance, upon recommendation by the AADE Governor, the affected companies referred to in the first subparagraph and per month, as well as any other details necessary for the implementation of this Law, are determined. The decision of the Governor of AADE determines the manner, the time, as well as any specific matter for the submission of this statement hereof. The provisions herein are in force, starting from September 2020, and for the leasing of the main residence, in which a lease is a employee or spouse or the other part of a cohabitation of an employee in the first subparagraph of which the employee has been temporarily suspended. Due to the avoidance of the dispersion of the Coronion Covid-19, in the conditions of paragraph 2. ” ‘4. The provisions of para Article 1 of Law 4683/2020 (A ’83), and which the employment contract has been temporarily suspended due to the avoidance of the Koronian Covid-19 dispersion, as determined by the industry and the month by the decision of paragraph 6. of the same article, and which the employment contract has been temporarily suspended due to the avoidance of the dispersion of the Koronos COVID-19, in accordance with the other conditions referred to in paragraph 2 of the same article. The exemption from the payment of part of the total rent, according to the previous subparagraph, may not be less than 30% of the total rent. Implementation of the present requires an agreement between the landlord and the lessee, who submit an electronic statement to the Independent Public Revenue Authority (AADE), and payment of at least 30% of rent within the agreed or ordinary deadlines, in accordance with Article 595. of the Civil Code. The decision of the Governor of AADE determines the manner, the time, as well as any specific matter for the submission of the statement hereof. ” 4.a. of the sixty third article of the Legislative Content of 30.3.2020 (A ’75), which was ratified by article 1 of Law 4684/2020 (A ’86), which was added by para . 4.b. as follows: “4, b. Seafarers whose maritime contract is suspended in accordance with paragraph 2 or spouse or the other part of a cohabitation agreement may be exempt from the obligation to pay part of the total main housing rent, which may not be less than 30% of the total Lease for as long as the shipping contract is still suspended in the beginning of October 2020, by way of derogation from the existing lease provisions. The application of the preceding subparagraph requires an agreement between the lessee and the lessee, OHOIOL submit an electronic statement to the Independent Public Revenue Authority (AADE), and payment of at least 30% of rent within the agreed or ordinary deadlines, in accordance with the article, in accordance with the article. 595 of the Civil Code. The decision of the AADE Governor shall specify the manner, the time, as well as any specific matter for the submission of this statement. ” Solidarity levy of Article 43A of the CCP The amount of lease not collected or collected not only by a law reduction of 40% of the total lease, but also by the optional reduction in 30% of the total lease lease, main residence lease, lease of dependent members – students and seafarers’ leases, by agreement of a lessor and lessee, under the terms and conditions provided for in the context of the impact of the Coronovation. (Article 5) - In Article 72 par. /2020 (A04) After the words “forty percent (40%)” the words “or not received or received by agreement between the landlord and the employee to exemption from the payment of part of the total lease are added by at least thirty percent. One hundred (30%), in accordance with the provisions in the context of the impact of the Covid-19 Coronovirus “and paragraph 42 shall be as follows: ” 42. It does not constitute income and is not subject to income tax and a special solidarity levy under Article 43A of the CCP. the amount of rent that was not collected or is not collected as required by law in the context of dealing with the effects of the COVID-19 coronavirus, for all the months that the measure of reduced payment on the monthly rent was in force or will be in force at a rate of forty percent (40% ) or which was not collected or not received by agreement between the landlord and a lessee to exemption from the payment of part of the total rent at least thirty percent (30%) of the rent, in accordance with the provisions in the context of the impact of the coinovirus. 19. ” , “The words” or if they received a reduced rent by at least 30%by agreement, in accordance with the provisions in the context of the impact of the Covid-19 Coronovation “and paragraph 2 shall be as follows: ” 2. The natural persons referred to in Article 72 (42) of Law 4172/2013, as added by paragraph 1, provided they received a reduced rent by at least 40% or if they received a reduced rent by at least 30%, according to provisions in the provisions in the provisions in the provisions. COVID-19 CORONIVISION impacts have the right to deduct 20% of 60% of the leasing of these months considered before the above reduction, from debts with a deadline for payment to the tax authority from 31.7.2020 and then, with the exception of debts from partial payment arrangements/facilities, debts in favor of a foreign state and from state aid recovery. ” ol>
from Portal www.taxheaven.gr
/> The proposed provision seeks to extend the support measures for the landlords, who did not enter the lease in the context of the impact of the Covid-19 Corps, in order to include, in addition to the legally reduction, and the optional reducing lease leases. , Main Residence Leasics, Settings’ Substants – Students and Navy leases by agreement of landlord and lessee under the terms and conditions set out in accordance with the provisions in the context of the impact of the Coronian Covid -19. In addition, the scope of paragraph 2 of article 13 of Law 4690/2020 is clarified with the explicit reference that the prescribed discount is exclusively entitled to natural persons. > Under Article 6 the proposed provision is being promoted under the measures, which is already implemented or adopted by our country for the first time in order to address the negative consequences that are still caused by the continued pandemic of the Coronion Covid-19 . These measures respond to the multilevel emergency conditions formed by the health crisis and could not be predicted in the preparation of the state budget. In addition, the interventions require resources exceeding the available credits of the reserves referred to in article 59 of Law 4270/2014 (A ‘143). Article 60 of Law 4270/2014, in conjunction with the provisions of Article 2 (5) of the same law …
<p style = "text-align: just;" Bill
Article 5
Subsidy Measures of Likers by Non-Collection of Law Revenue >
