VESYROPOULOU’S DECISION ON THE SIGNIFICANT REDUCTION OF OWNERS’ OBLIGATIONS DUE TO REDUCED RENTS!

Debts from partial payment arrangements, debts in favor of a foreign public and debts from state aid recovery are excluded from this regulation.

The debts that receive a discount concern in order:

a) Income tax, solidarity contribution, business tax, luxury living tax,

b) ENFIA,

c) VAT and

d) Any other tax, fee, levy or financial penalty that falls under the KFD.

Also, it is expressly determined that the amount of the rent that does not collected or will not be collected, does not constitute income and will not be taxed in 2021.

In his statement, Mr. Vesyropoulos emphasizes that “The Government supports with substantial measures every social and professional group that suffers the consequences of the pandemic. Property owners will be entitled to a reduction in their tax debts, at a rate of 20% on the rent they finally receive. The aim is to balance the damage they have suffered from the fact that they receive a reduced rent”.

The text of the decision is as follows:

Decision 1193/2020 Official Gazette B’ 3505/24.08.2020 Application of the provisions of article 13 of Law 4690/2020 (A’ 104), regarding the measures to support landlords from not collecting rent as required by law in the context of dealing with the effects of the COVID-19 coronavirus.

THE DEPUTY MINISTER OF FINANCE

Having regard to:

1. The provisions of article 13 of Law 4690/2020(A ‘ 104).
2. The provisions of articles 39, 40, 43A, 67 and 72 of n. 4172/2013(A’ 167).
3. The p .d. 142/2017“Organization of the Ministry of Finance” (A’ 181).
4. The p.d. 83/2019 “Appointment of Deputy Prime Minister, Ministers, Deputy Ministers and Deputy Ministers” (A’ 121). ‘ 2901).
5. The under no. 339/18-7-2019 decision of the Prime Minister and the Minister of Finance “Assignment of powers to the Deputy Minister of Finance Apostolos Vesyropoulos” (B’ 3051).
6. No. 1 of 20.01.2016 act of the Council of Ministers “Selection and appointment of the General Secretary of the General Secretariat of Public Revenue of the Ministry of Finance” (Y.O.D.D. 18), in conjunction with the provisions of para. 10 of article 41 of Law 4389/2016, as also apply under items 5294 EX 2020/17.1.2020 (Y.O.D.D. 27) decision of the Minister of Finance on the renewal of the term of office of the Governor Independent Public Revenue Authority.
7. The provisions of Chapter A’ of n. 4389/2016“Establishment of the Independent Public Revenue Authority” (A’ 94).
8. The following information D.ORG. A 1036960 EX2017decision of the Governor of the Independent Public Revenue Authority “Organization of the Independent Public Revenue Authority” (B’ 968), as applicable. 10. The recommendation of the Governor of AADE from 21/8/2020.
9. The need to determine the detailed implementation of the relevant provisions for the measures to support landlords from the non-collection of rent as required by law in the context of dealing with the effects of the COVID-19 corona virus.
10. The fact that this decision does not cause an expense to the state budget, we decide:

Article 1

1. With par. 1 of article 13 of Law 4690/2020, paragraph 42 was added to article 72 of the Tax Code Income according to which the lessor, natural or legal person – legal entity, which does not collect forty percent (40%) of the rents due to the mandatory rent reduction measures in the context of dealing with the effects of the COVID-19 coronavirus pandemic, does not is liable for the uncollected amount to income tax and special solidarity levy and is not required to report these amounts when submitting the annual income tax return. For the remaining sixty percent (60%) of the leases, the provisions of articles 39 and 40 of n. 4172/2013.
2. With par. 2 of article 13 of Law 4690/2020, it is stipulated that for lessors, natural persons, who are subject to the provisions of the previous paragraph, if they have collected a reduced rent of at least forty percent ( 40%), have the right to deduct an amount equal to a percentage of twenty percent (20%) of sixty percent (60%) of the rents of those months calculated before the above reduction, from debts to the tax authority with a final payment date of 31.7.2020 onwards, with the exception of debts from installment arrangements/facilities, debts in favor of foreign public authorities and from the recovery of state aid.
3. The amount of the discount reduces debts to the tax authority with a payment deadline of 31.7. 2020 onwards, in the following order:

a) from personal income tax, special solidarity levy, fee pretension and luxury living tax, arising after an act of administrative determination which is issued on the basis of a timely initial declaration,

b) of EN. F.I.A.,

c) from F.F.A.,

d) any other tax, fee, levy or pecuniary penalty falling within the scope of the Tax Procedure Code.

4. The beneficiary of the discount, the lessor, in order to benefit from the favorable arrangements provided for by these provisions, submits by using an electronic method of communication a statement on the change of the rent (“COVID Statement”), in accordance with the ones defined in the POL 1162/2018 decision of the Governor of A.A.D. .E., as applicable, after the amendments to the decisions under items A. 1139/2020 and A. 1154/2020“.

Article 2

1. The Tax Applications Development Directorate (DAFE) of the General Directorate of Electronic Government (G.D.ILE.D.), after processing the submitted data, as well as the data kept in the information systems of A.A.D.E. carries out a central control to fulfill the conditions of par. 2 of article 13 of Law 4690/2020 and if they are fulfilled, issues and sends to D.O.Y. which is responsible for receiving the income tax return of the beneficiary of the benefit, cleared Individual Deduction Sheets (A.F.EK.) linked to the case-by-case deductible certified debt.
2. If due to the submission of an amending statement with which reduces the amount of tax owed for which the benefit of the deduction has been granted, an additional amount available for deduction arises, this reduces debts in the order of par. 3 of article 1.

Article 3

The provisions of paragraph 1 of article 13 of Law 4690/2020 apply to incomes acquired from 01.01 .2020 onwards.

This decision to be published in the Government Gazette.

Athens , August 24, 2020

The Deputy Minister
APOSTOLOS VESYROPOULOS