Business tax credit details for companies increasing full-time positions

Resolution A.1040/2023 has been published in the Official Gazette, which specifies the method for calculating the increase in the average number of employees with a full-time employment relationship, the method and procedures for verification and examination of conditions and any other necessary details. For exemption from the obligation to pay business tax for small and medium-sized enterprises that increase full-time employment opportunities.



Analytically:


beneficiaries


1. The beneficiaries of the exemption from paying the application fee are:
a) Natural persons carrying on a commercial activity
b) legal persons and legal entities,

No matter how they keep their books (unregistered or unregistered), whose total income during the tax year for which the exemption is granted does not exceed two million euros.


2. To be exempt from the payment of professional fees for the tax year, the above-mentioned persons must, in the same tax year, increase their full-time employment by at least three twelve (3/12) compared with the previous year.



How do you calculate the increase in the average number of full-time employees?


1 – To calculate the increase of at least three twelve (or 25 per cent) of the average number of employees of beneficiary enterprises with a full-time business relationship, the average number of employees at the time of consideration is taken into account (for exemption from business tax) for the year That is compared to the average number of workers in the previous tax year. The basis for calculating the average number of employees is the number of employees from 1/1 to 31/12 of the previous tax year, with respect to the number of employees from 1/1 to 31/12 of the year under review.


2. The average number of full-time employees in the enterprise per month is calculated from the total number of employees employed under a full-time, indefinite or fixed-term employment contract for the whole year.


3. Full-time employees include seasonal employees.


4. In the event of a merger of companies in particular, the average number of employees in the company resulting from the merger will result from the sum of the average number of employees employed in each of the merged companies for the time period of its last management. year.


5. A full-time employee, according to the previous paragraphs of this document, who works for the company for at least one day more than half of a calendar month, i.e. more than 15 days in a month, is counted on an annual basis as a single employee. Twelfth (1/12).


6. In calculating the average used, percentages less than 0.5 are rounded to the lowest and percentages greater than or equal to 0.5 are rounded to the highest.



Method and procedure for verification and verification of conditions – Procedure for filing objections


1. To check the status (the gross income during the tax year for which the exemption is granted does not exceed two million euros), the amount of gross income is drawn from the statement of financial statements from the business (form E3) and specifically, from code (047) of the form for the year concerned tax.


2. The average number of full-time employees in the firm is calculated by PS. The Ministry of Labor and Social Affairs frees me monthly from all employees working under a full-time employment contract, for a full year, in accordance with the provisions of Article 3 of the decision. The duly extracted data is transmitted by the Ministry of Labor and Social Affairs to the AADE.


3. The AADE shall, by the last working day of the fifth month from the end of the management period, notify by e-mail the companies that meet the requirement of paragraph 2 of Article 2 of this Act. As long as these companies also satisfy the condition of paragraph 1 of Article 2, they are exempt from the obligation to pay business tax for the relevant tax year. If, at the time of receiving the email from AADE, recipients have already filed an income tax return for the relevant year, they must file an amended return in order to be released from the obligation to pay the application fee for that year.


4- Companies that do not receive the electronic message of the previous paragraph, due to failure to verify that the conditions of the previous article have been met, have the right to file an objection until the last working day of the first two weeks of the sixth month. from the end of the administration period. The objection is submitted by filling out the relevant form in the context of PS. Argani. Objections are examined by a committee, which is formed by the Secretary General for Labor Relations. Under the penalty of refusing the objection, companies are obligated to submit all supporting documents and data necessary to document the objection with the above form, in electronic form. The company shall be notified of the decision issued by the Grievances Committee and notify A. Arjani, who sends updated information to the AADE for these cases. AADE sends an email to companies whose resumes are accepted. If, at the time of receiving the email from AADE, recipients have already filed an income tax return for the relevant year, they must file an amended return in order to be released from the obligation to pay the application fee for that year.




Other tax issues


1. As long as the company falls within the scope of the provisions of the decision, its subsidiaries are also exempt from paying trade fees, as specified in the provisions of Paragraph 1 of Article 31 of Law 3986/2011.


2. For a business that has an administrative use other than the calendar year, the gross income amount is derived from code (047) on the statement of financial statements from the business (E3) for the relevant tax year, while the relevant average number of employees with a part-time employment relationship Full are calculated, respectively, for the months constituting the respective tax year.


3. For companies that changed the management period during the year, for the respective tax year, the total gross income declared in code (047) of the E3 form is transferred on a twelve-month basis. Correspondingly, a reduction calculation will be made for the average number of employees fully employed in the firm for the respective time periods on a twelve-month basis.


4. For cases of a business that started its operations during the previous tax year or ceased its activity during the considered tax year, the average number of fully employed employees in the company is reduced accordingly. Taking uses into account on a twelve-month basis to compare them to the average number of the following tax year from the beginning of the tax year or the tax year before the end of the tax year.






work obligations


1. The foregoing shall be derived from the payroll data of the companies belonging to the beneficiaries of this Agreement and other data kept on the basis of labor and insurance legislation, which will be submitted in the event of an audit in order to certify compliance with the terms of paragraph 3a of Article 31 of Law 3986/2011.


2. The concerned companies must keep accounting records for the period specified by the provisions of the Tax Procedures Law (Law 4987/2022).



Article 7


The beginning of strength


The provisions herein are effective from 1.9.2022 and apply for the purpose of creating a relief from the obligation to pay interest charges for tax year 2022 and thereafter.




See the decision in the center’s tax file