New deadline until the end of February is set for taxpayers in order to cover the exhibits through parental grants and donations and avoid the payment of extra tax with the submission of 2021 tax declarations.
The deadline is set to facilitate the taxpayers which have incomes lower than exhibits and due to the fact that they can not cover the difference, they deposit larger tax amounts.
More specifically, pursuant to Ministerial decision by the deputy Minister of Finance Apostolos Vesyropoulos the deadline of inheritance, donations and parental grant tax declaration submission, which was ending within November 2020 or expires within the month of December 2020, is now extended until 26.02.2021.
The decision specifically mentions : of inheritance, donations and parental grant tax declaration submission, which was ending within November 2020 or expires within the month of December 2020, is now extended until 26th of February 2021. In addition, the same deadline is granted for declarations for which the three-month deadline for submission of extension application has expired or is about to be expired, regardless of its submission or lack of it.
For the cases in which the initial (six month or yearly) deadline of submission of tax declarations for inheritance, donations and parental grants, had expired or expires from 27th November until 31st December 2020, the starting point of the three-months deadline for extension application submission is set at the legal expiration of the six-month or yearly deadline in each case.”
It is noted that the legislation predicts regarding the amounts given by several relatives (grandparents, parents, siblings etc.) or third parties towards a tax payer, that the receiver of the grant, viz. the individual who receives this amount, may cover the expenses of acquiring property with this amount, as long as the donation or parental grant are completed within the current tax year. Since for this year the completion of the relative acts has been extended until 26th February 2021, the ones completed after 1st January will be regularly accounted for the coverage of exhibitions of the year 2020.
According to the legislation:
The person who is liable to submit a donation tax declaration is the individual who receives the grant, as long as the donation has not been conducted with notarial document. In different case, all the contracting parties are liable for submitting a declaration.
The acquisition of amounts from donation or parental grant is submitted to tax, which is calculated individually with 10% factor, regarding beneficiaries of category A’, with 20% factor, regarding beneficiaries of category B’, and with 40% factor, regarding beneficiaries of category C’.
In order for a parental grant or donation to be profitable, the benefit emerging from avoiding the extra tax shall be greater than the donation tax.
The following point needs attention; the amount granted by taxpayer A to B is an exhibit, viz. it must emerge and be justified from the incomes he/she declares.