In implementation of the provisions of recent law 4690/2020, stating that individuals that received or still receive reduced rent by 40% due to Covid-19 measures will enjoy a discount (amounting to 20% of the received 60% of the rents) on their tax obligations due as of 31.07.2020, the Ministry of Finance issued decision nr. 1193/24-8-2020 pursuant to which:
1. The amount of such 20% discount will reduce due tax obligations in the following order:
(a) Individual income tax, special solidarity contribution, entrepreneur duty and tax on luxury living imposed by a tax assessment notice, issued following an initial tax return filed within the set deadline
(b) Unified Real Estate Property Tax (ENFIA)
(d) Any other tax, duty, levy or monetary penalty as per the Code of Fiscal Procedures
2. In order to benefit from such discount the lessor will need to submit electronically a Covid-19 lease declaration and following an audit by the centralised services, a relevant individual discount slip will be forwarded to the competent local Tax Authority. In case, after an amendment to the tax returns, further reduction amounts arise, such will be applied to taxes due in the above order.
Last, the ministerial decision also provides that the exemption of unpaid rent of 40% due to Covid-19 from the taxable income of both individuals and legal entities will apply to income accrued as of 01.01.2020.