Professionals: Guide to completing this year’s E3

A series of codes concerning income and expenses which are drawn from the digital platform myDATA , information (VAT number, KAD, DOU of first submission, start date) but also data for active business bank accounts, POS of business, average number of employees will see pre-populated in the new form E3 professionals and businesses.

Based on the data of the E3 form, the net income obtained in 2023 by approximately 730,000 professionals will be calculated in an accounting manner, while in the E1 form, the basic form of the tax return, the presumptive income will be prefilled. The tax will be calculated on the highest income while those who disagree will have the possibility to submit an application for the audit or for objective reasons (military service, hospitalization, pregnancy, etc.) on the platform that AADE will open in the first fortnight of May.

The pre-filling of the E3 for professionals is done for convenience and the data is not binding. This means that taxpayers can modify the data entered in the codes.

The Pitsili decision

Shortly before the premiere of the new tax returns, by the decision of the AADE director, Giorgos Pitsilis, instructions are given for the type and content of the new E3 form:

2. AADE has pre-populated income and expenditure categories with amounts in the relevant codes of the respective tables based on the data transmitted to the myDATA digital platform. As long as the relevant expenses have not previously been characterized on the myDATA digital platform, all expenses are pre-filled in code 585 (“Miscellaneous Operating Expenses”) of the “Total” column, in option 016 of the relevant Subtable.

3. The correct and accurate completion of Form E3 constitutes an obligation and responsibility of the taxpayer. The pre-completion of the codes of Form E3 is intended to facilitate the taxpayer and is not binding for him. The pre-filled amounts in the codes of the E3 form can be modified by the taxpayer.

4. In the cases of spouses and natural persons who have entered into a cohabitation agreement and submit a joint declaration for their incomes, the E3 form is submitted for each of the spouses/parties of the cohabitation agreement where this is required for their individual incomes.

5. In case of cessation of operations and commencement within the same tax year, one (1) statement of financial data from business activity for the entire tax year shall be submitted.

6. It is not foreseen to submit the E3 form with a reservation, since the reservation concerns exclusively the content of the income tax return (E1 or N form, as the case may be).

7. The statement of financial data from business activity is submitted once for the entire business, regardless of the number of branches and branches.

8. The person liable to submit a statement of financial data from a business activity completes the tables that concern him.

9. Any change that occurred in the state of the business during the tax year cannot be declared on the E3 form if it has not previously been declared to the Registry Department of the service responsible for receiving the declaration.

10. In the case of natural persons, the E3 is submitted by those obtaining income from business activity for the needs of accounting determination of the result, regardless of the obligation to keep appropriate accounting records (books and data).

11. For non-profit legal entities, the E3 form is submitted when they obtain income from business transactions, while in the case that they have income only from capital and capital transfer capital gains, as well as when they obtain non-taxable income, they submit the E3 form without indicating amounts.

Changes

The main changes made to the E3 form include:

1. In table B, a new line “Average number of full-time employees employed by another enterprise” has been added to the entity size criteria

2. Added reinforcements to code 083:

– Extraordinary temporary support to farmers and SMEs affected by the effects of the Russian invasion of Ukraine (related article 72 of Law 5016/2023) and

– Aid granted on the basis of the European Commission’s announcement (2022/C 426/01) “Temporary framework for taking state aid measures to support the economy following Russia’s attack on Ukraine” (related article 47 of Law 5035/2023).

3. Codes have been added to Schedule F to grant an incremental deduction for green economy energy and digitization expenditures incurred in tax years 2023, 2024, and 2025.

Source: ot.gr