The Ministry of Finance gives an extra month’s grace period for cheap property transfers. More specifically, for those transactions made until January 31, 2022, for the purchase of property, parental provision or donation, the current property values will be taken into account and not the increased values that will come into force on January 1.

A prerequisite is that the relevant declarations for the tax calculation must have been made by 31 December 2021. The relevant regulation is provided for in a multi-bill of the Ministry of Health

At the same time, another provision strengthens incentives for taxpayers to collect even more electronic receipts. In particular, from 2022 to 2025, medical expenses will be doubled to cover 30% of taxpayers’ income, while expenses incurred with electronic money by certain professions will be deducted by 30% from taxpayers’ taxable income.

Another provision also extends the validity of reduced and over-reduced rates of Value Added Tax (VAT) for certain goods and services.

More specifically, the new regulations provide for:

1. Transfers, parental gifts and donations of real estate: in definitive contracts for the transfer of real estate by force majeure or as a gift or parental gift, which are drawn up between 1 January 2022 and 31 January 2022, the transfer is deemed to have taken place on 31 December 2021 for the purposes of calculating the tax concerned, provided that the relevant declarations were submitted by that date.

2. Incentives for electronic transactions: Specifically for tax years 2022 through 2025, certain subcategories of Group 6 (Health Care) expenses, with respect to which the use of electronic transactions is not widespread, are counted at twice their value to meet the required expenditure amount. The Minister of Finance shall, on the recommendation of the Governor of the AADE, determine the subcategories of expenditure and any other details necessary for the implementation of this paragraph by decision of the Minister of Finance. The procedure for the collection of the necessary data from payment service providers shall be determined by decision of the Governor of the DPA. Specifically for the tax years 2022 to 2025, from the taxable income of an individual person from wages and pensions, business activity and real estate, solely for the purpose of calculating income tax, an amount equal to thirty percent (30%) of the costs of receiving services shall be deducted on a pro rata basis for certain expenses in Groups 4 (Housing), 5 (Services), 7 (Transportation), 9 (Recreation, cultural activities), 10 (Education), 12 (Services) of sec. (d) of para. 6 made by electronic means of payment in accordance with point (a) of the aforementioned paragraph. The deductible amount of income shall not exceed the amount of five thousand (5,000) euros per year nor the actual income from wages and pensions, business activity and real estate. b) By decision of the Minister of Finance, upon the recommendation of the Governor of the AADE, specific costs of receiving services with respect to which the use of electronic transactions is not widespread, for which subparagraph a) applies, as well as any other necessary details for the implementation of this provision, may be determined.”

3. Extension of the reduction of tourist bus circulation fees for the year 2022.

4. Extension of reduced and over-reduced rates of Value Added Tax (VAT) for certain goods and services.

Source: APE-MPA