Retrospective declaration with 7 SOS points for wages

By | May 15, 2023

Since yesterday, salaried workers and pensioners have the possibility to submit electronically in the myAADE digital portal, in the TAXISnet system, amending income tax returns in order to include the retroactive amounts of the remunerations received within 2022 and corresponding to the fiscal years 2015-2020.

In detail, employees and retirees who last year received retroactive amounts of remuneration for the years 2015-2020 should pay special attention to the following 7 points:

  1. All classes of net income, additional fees, compensation, pensions paid retroactively in 2022 to employees and pensioners by virtue of law, judicial decision or collective agreement are taxed, as well as cases in which pensions are granted late or with retroactively by insurance companies. in the years that go back, since the moment of obtaining these retroactive benefits is considered the moment in which the beneficiary acquired the right to collection, for which reason they must be declared with a supplementary-modifying declaration at the time in question. With amending supplementary declaration at the appropriate time, uncollectible accrued wages paid in the year 2022 must also be declared and provided that they are indicated separately in the annual salary certificate that is granted to the beneficiary or provided that it is obtained by any convenient means in the year to which they refer (such as a certificate from a public accountant – tax expert based on periodic detailed declarations (APD) from the insurance company, etc. or previous salary certificates showing the amount of salaries to be had become uncollectible) derivative, judicial decision, etc.). For those wages for which wages tax was paid or should have been paid in a prior tax year, amendment returns are filed with the IRS for the years to which these wages relate.
  2. From tax year 2015 onward, retrospective returns are filed electronically using the online Return Filing Service through the myAADE digital portal. The taxpayer selects the corresponding year to file his return. The corrective declaration is presented for each year in relation to the retrospectives. The debtor enters his account and selects the years to which the retroactive payments collected in 2022 go back. For example, for the taxable year 2017, he must select the year of filing as the year 2018. Then he must select “Modification Schedule” and “Schedule E1 Hindsight”. In the retroactive return, the amounts have been pre-filled in the respective codes and the taxpayer cannot fill in or modify another code. Therefore, after the codes appear preloaded with the new amounts, the declaration must be presented in final form. Immediately after the presentation of each corrective declaration, a new liquidation note is issued with the amount of the tax. If the taxpayer wants to amend other items on his return, he must file a separate amended tax return.
  3. The declaration of the retroactive amounts may be presented from now until the end of December 2023, while the tax to be settled must be settled before January 31, 2024.
  4. Employees and pensioners who have received retroactively for one or more of the years of the 2015-2020 period and are going to declare them or have already declared them by electronically submitting the corresponding rectifying declarations, may, if they wish, liquidate in 2 to 48 interest monthly installments the debts, which arose from said rectifying declarations. The partial payment of these debts can be made based on the permanent regulation of Law 4152/2013.
  5. IRPF rectifying returns submitted by employees or pensioners with retroactive returns of salaries or pensions from previous years, retroactive returns of unemployment benefits, remuneration of SNS doctors from evening clinics of SNS hospitals, are received without fines and interest, up to end of the fiscal year in which the salary or pension certificates were issued, if applicable.
  6. Modification of declarations that are submitted after the deadline, not due to the fault of the beneficiary of the income, but due to the late submission of an initial or amending electronic file to AADE, monthly or annually, by the employer/competent body that has the obligation , as in any case of extemporaneous issuance, correction and issuance of a certificate by an obligated subject, when this is necessary for the completion and presentation of a declaration, they will be considered appropriate if they are presented within the fiscal year in which they were issued. certificates by the entity. To avoid penalties and interest, these amended returns must be filed with the IRS. No penalties or interest are assessed even in cases where these certificates are issued late by a foreign agency.
  7. No fines are imposed, in case of extemporaneous presentation of a modified personal income tax declaration, of which the additional amount of tax that results to be paid in relation to the original declaration is up to 100 euros.

Calculation of taxes without penalties and interest

Taxpayers must present the amending returns corresponding to the end of the current year in which the income or pension certificates were issued, including the retroactive ones, to pay only the additional income taxes corresponding to the retroactive ones received. The taxes that will be paid will be calculated on the basis of the income tax scales and the special joint and several tax that were in force in the years to which the retroactive measures refer and after deducting the income tax withheld at a rate of 20% when the retroactive were paid. The previous declarations will not be encumbered with separate fines for late filing, nor with late payment interest if they are filed before 12-31-2023.

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