The new format of the Form Ε3, which concerns the statement of financial data of persons exercising business activity, made public by decision of the Independent Public Revenue Authority. The central change in E3 is the Addendum Specialist subtable, which shows all the financial support provided in 2020 to address the impacts of the pandemic but also Cyclone Janus. ΣIn particular, 11 cases of tax-free income are mentioned.
The E3 is used to carry out verifications and cross-checks on the tax behaviour of business operators and to combat tax evasion, while this year will be used to record fixed business expenses, on the basis of which the compensation of fixed costs to businesses will be implemented through the provision of credit for insurance and tax obligations. In accordance with the decision of the Governor of the AADE G. Pitsilis:
- The statement of economic data from business activity attached with the late and overdue initial and amended returns with the forms «E1» (Income Tax Return of Individuals) and «N» (Income Tax Return of Legal Persons and Legal Entities) using an electronic communication method or in handwritten form at the D.O.Y. as appropriate.
- In the case of spouses and natural persons who have concluded civil partnership and submit a joint return on their incomes, the E3 form is submitted for each of the spouses/cohabiting partners, where required by their individual incomes.
- In the case of discontinuation and commencement within the same tax year, one (1) statement shall be submitted financial data from business activity for the whole tax year.
- No provision is made the submission of form E3 with a reservation, since the reservation concerns only the content of the income tax return (form E1 or N, as the case may be).
- The statement of financial data from business activity, shall be submitted once for the whole of the undertaking, irrespective of the number of branches and branches.
- The person required to submit a statement of economic data from a business activity shall complete the tables those who concerning.
- Any change which has occurred in the status of the enterprise during the tax year, cannot be declared on form E3, if it has not previously been declared to the Taxpayer Registration and Registration Department of the competent D.OY
What changes in E3
Among the limited changes compared to the previous tax year's form, there are amendments to Table F ’Determination of Taxable Profits of Sole Proprietorships (Single-entry - Double-entry books)“, which now includes codes for a number of provisions applicable for the 2020 tax year.
In particular, new sub-tables have been added to Table F
For the codes of taxable income (codes 144, 244, 344, 344, 444, 544) which are deducted for the calculation of the taxable net result. The sub-table required to be completed includes detailed fields for a number of taxable revenues introduced by provisions of laws within 2020:
→ Code 001 : «Tax-free special purpose allowance»
→ Code 002 : «Tax-free aid to those affected by Cyclone «IANOS» (Article 2 of Law 4728/2020)»
→ Code 003 : «Tax-free aid to the victims (Law 4722/2020)»
→ Code 004 : «Tax-free compensation for leases of tourist accommodation (article 36 of Law 4753/2020)»
→ Code 005 : «Tax-free subsidy for the supply of radiators (Article 55 of Law 4758/2020)»
→ Code 006 : «Benefit due to one-off repayment of debts (Law 4682/2020, Law 4690/2020)»
→ Code 007 : «Benefit from the write-off of liabilities in the context of pre-insolvency reorganisation proceedings (Article 99 et seq. of the Bankruptcy Code)»
→ Code 008 : «Tax-free aid in the framework of the response to the effects of the coronavirus COVID 19 in the primary sector (Article 146 of Law 4764/2020)»
→ Code 009 : «Tax-free aid in the context of countering the effects of the COVID 19 coronavirus on KTEL, TRAINOSE, tourist offices-enterprises that own tourist buses (Article 139 of Law 4764/2020)»
→ Code 010 : «Benefit from the non collection of rents in the context of dealing with the effects of the COVID 19 coronavirus (par. 2 article 13 of Law 4690/2020)»
→ Code 011 : «Other cases of tax-free income
Still: New fields regarding:
- Expenditure for the implementation of electronic invoicing Article 71F of Law No. 4172/2013(εξωλογιστικά)
- Accumulated depreciation article 24 of Law No. 4172/2013 (ex-post) (the previous code specifically related to the increased depreciation for energy efficiency costs)
- Also, codes have been added regarding the taxable net results for the production of electric vehicles and goods related to electric vehicles).
Codes were added to the Tax Reform Statement regarding:
- rental costs, if they have not been paid by electronic means of payment or through a payment service provider. ( code 2027)
- any sums of money or other consideration paid directly or indirectly for the unauthorised sale of advertising television time (code 2028)
- expenditure on corporate social responsibility actions where no accounting profit is generated (code 2029).
