AADE: AS OF 15.12 THE CORRECTIONS OF WRONG STATEMENTS OF COVID, WITH NEW CLARIFICATIONS!

This decision is as follows:

SUBJECT:            Clarifications on issues related to the submission of the “Covid Declaration” for the months of March to August 2020.

With A. 1243/2020 (B’ 4914/09-11-2020) Decision of the Governor of A.A.D.E. a new paragraph 8 was added to article 11 of the decision of the Governor of the Independent Public Revenue Authority POL.1162/2018 according to which landlords who receive notice from the Tax Administration to submit the “Covid Declaration” or the “Property Lease Information Declaration” for the months of March to August 2020 in order to correct their errors or omissions , have the possibility to submit the relevant declarations until December 15, 2020.

In this context and for the taxpayers who will receive the above notification by the Tax Administration, to submit the relevant declarations, so that the provisions of para. 2 of article 13 of Law 4690/2020 (Α΄104), regarding the discount of 20% on 60% of the rent calculated before the reduction, from debts with a final date of payment to the tax authority from 31/7/2020 onwards, the following is clarified:

1. Based on the provisions of article 11 of POL.1162/2018 (Β΄3579) Decision of the Governor of A.A.D.E . as added by article 5 of A.1139/2020 (B’ 2269) Decision of the Governor of A.A.D.E. and A. 1230/2020 (Β΄4620) Decision of the Governor of A.A.D.E., the real estate lessors, whose rent has been reduced based on the provisions in force regarding measures to deal with the ongoing consequences of of the COVID-19 coronavirus pandemic, submit a “Covid Declaration” in order to declare the change in rent and to benefit from the favorable arrangements provided for in these provisions. The initial or amending “Covid Declaration” is submitted within the deadlines set by the above decisions.
2. With par. 4 of A. 1192/2020 (Β΄ 3636) of the Decision of the Governor of A.A.D.E. it was defined that an amending “Covid Declaration” is understoodthat follows the “Covid Declaration” submitted for the first time (initial declaration) regardless of the months it concerns.
3. Further, the submission of the “Covid Declaration” presupposes the submission of the “Property Lease Information Statement”. Therefore, in the cases for which a “Property Lease Information Statement” has not been submitted electronically, in accordance with the provisions of article 9 of POL. 1162/2018, as added by article 4 of A.1139/2020 Decision of the Governor of A.A.D.E., this statement should precede the submission of a “Covid Statement”. This case also covers lease agreements that were concluded before January 1, 2014 as well as cases of rent adjustment (for example the annual rent adjustment), which should be included in the rent amount and reflected accordingly the right way in the respective field to cover the cases concerning readjustment (e.g. 2% on the turnover, 5% per year in relation to the first year’s rent, etc.), which during the initial submission of the lease information statement have been listed in the notes field.
4. It is clarified that in accordance with the provisions of para. 2 of article 13 of Law 4690/2020 (A’ 104), as amended by para. 2 of article 5 of Law 4722/2020 (A’ 177) the said favorable arrangements occupy only natural persons lessors and not legalpersons or legal entities.
5. In the event that the lease agreement has been tacitly extendedand no amending “Real Property Lease Information Statement” has been submitted to declare such extension, the lease agreement shall be deemed to be in validity, as long as no declaration of termination has been submitted and therefore the “Covid Declaration” will be accepted by the Tax Administration for the implementation of the discount of 20% on 60% of the rents calculated before the reduction, from debts with a due date payment to the tax authority from 31/7/2020 onwards, provided that the initial rent on the “Covid Declaration” is equal to the rent declared on the “Property Lease Information Statement”.
6. In the event that “Covid Declarations” were submitted with an initial rent different from the monthly rentof the “Property Lease Information Statement”, to implement the discount of 20% on 60% of the rent calculated before from the reduction, from debts to the tax authority from 31/7/2020 onwards, and as long as the other conditions are met, the lessor who has submitted the declaration must resubmit either an amending “Covid Declaration” or an amending “Information Declaration” of Lease of Real Estate” correctly depicting the details of the lease relating to the amount of the lease.
7. It is emphasized that in cases of affected businessesthat have submitted a declaration of cessation of operations, the “Covid Declaration” will the calculation of the discount is also taken into account. >par. 2 of article 13 of Law 4690/2020 will be carried out proportionally only for the period of the month concerned until the date of the suspension of operations. A proportional calculation is also carried out in case of starting work.
8. The “Covid Declaration” in which the lessor is poor is accepted. In the event that the tenant is poor, the “Covid Declaration” is accepted only if he is also an employee with a suspended employment contract and the “Covid Declaration” concerns the lease of his main residence. If the “Covid Declaration” refers to the professional housing of a poor tenant, it is not accepted.
9. By the Joint Ministerial Decision of the Ministers of Finance, Development and Investments, Labor and Social Affairs and Shipping and Island Policy A.1228/2020 (Β΄ 4582) it was defined that the provisions on rent reduction by 40% are also applied in cases of subletting properties. In this case beneficiary of the discount of par. 2 of article 13 of Law 4690/2020 (Α΄104) may only be the sublessor, subject to the conditions for reducing the rent and in the person of the sublessor for his professional establishment, so accordingly application beneficiary of the discount of par. 2 of article 13 of Law 4690/2020 (A΄104) is also the lessor for this lease. Real Estate” by more than one lessor – co-owners and submitted by each separately “Covid Declarations” the deduction of para. 2 of article 13 of Law 4690/2020 (Α΄104) is granted only for one of the “Property Lease Information Statements” and specifically for the one that corresponds to the first submitted “Covid Statement” or statement stating the date of termination of the lease. If all the necessary information is obtained from said declaration, then the discount is granted to all lessors. If during the mass processing of the multiple Covid declarations the details of the properties are not fully identified, the Tax Administration will contact the lessors to provide clarifications in order to finally carry out the deduction or not.
10. If in the “Covid Declaration” the type of use of the lease has not been selected, an amending “Covid Declaration” must be submitted to fill in the specific omission.
11. In the event that the lessor has submitted “Covid Declaration” for a property that has not been declared in the Property Information Declaration (E9), in order to have the benefit of 20% it is required, in case the deadline for submitting the E9 has not passed and within the relevant deadline according to A.1243/2020 Decision of the Governor of A.A.D.E. (Β΄ 4914/09-11-2020), either to submit this declaration in accordance with the written provisions, or to send the supporting documents from which his legal relationship with the property in question emerges, to the e-mail address diloseiscovid @aade.gr according to the relevant message he will receive in his inbox on myTAXISnet.