The income statement has started: what you need to know this year

The State Tax Inspection (STI) has prepared 2.3 million preliminary declarations, based on the data collected on what income or expenses the population incurred last year. Approximately 1.7 million population will be enough to validate the statements.

“This year, the declaration is as early as ever and today, March 3, the data caused by the declaration for our residents, therefore we say that it is that day,” says Stasė Aliukonytė – Šnirienė, Director of the ITS Tax Obligations Department.

Last year, the declaration began on April 22. Last year, 86 percent. declarations of the individuals presented themselves and 71%. people rated the filing system as excellent.

“This year we are filing remotely, this is the situation. Why are we doing this? For years, we have approached 100 percent. Returns sent electronically. Last year, only a few hundred returns were filed on paper.” says a representative of the STI.

Last year, 99.92 percent. statements submitted electronically.

By Wednesday, more than two hundred thousand people had already declared their income, as the data was uploaded to the EDS system since January 1.

Last year, the declaration period was extended until July, but this year the declaration will last until May 3, a relevant date for those who have tax arrears, because after this date interest begins to accrue.

“Last year, the declaration deadline was postponed to July 1, but it started on April 22. Actually, it was a full two-month declaration, it was a new system, it was the first wave of a pandemic, quarantine and things like that, many changing circumstances, this year we have a lot of experience, our clients also, and we say that two months is enough time to file returns, therefore we do not consider extensions, ”says S. Aliukonytė – Šnirienė.

Those who wish to recover the excess payment of income tax can do so during the previous 5 years by declaring the income of the corresponding year.

“If a person has filed a declaration later, it is important to say that there is no obligation to file a recovery declaration, it is in the interest of the person; you can do it after May 3, generally within 3 months. You must return”, explained S. Aliukonytė-Šnirienė.

July 31 is the deadline for the STI to refund overpayments of taxes. If the statements are sent later, the STI returns the money within three months, reported S. Aliukonytė – Šnirienė.

Who has to declare?

The set of filers itself does not change. The STI representative pointed out that it is mandatory to declare income to those who have carried out individual activities, sold real estate, received interest for more than 500 euros and in similar cases.

Income declarations must be submitted by residents who carry out individual activities, as well as by those whose annual income exceeds the established amount of average salary and by residents who received other income for which they must pay taxes.

Income must be reported by residents who have been subject to excessive tax-free income (NPD) and therefore must pay part of the PIT or recover this tax if the NPD has been applied too low.

Also wanting to take advantage of the benefits of GPM and recover part of the costs incurred (mortgage interest, tuition fees or life insurance, etc.). Declarations of assets for positions held must be presented by politicians, officials, etc., informs the STI.

91 percent. the population declared income on time last year.

“When declaring, both people who carry out individual activities and those who have other income must, of course, pay the income tax of natural persons,” says a representative of the STI.

What happens if a mandatory declaration is not made and the fees are not paid?

“The first thing, let us agree, it is very important to declare, in any case,” says S. Aliukonytė-Šnirienė.

It points out that, in the absence of a declaration, the STI can calculate the taxes to be paid by itself.

“And if a person has declared but has not paid, the existing rules and mechanisms come into force. As of May 3, the default interest begins to be calculated and, consequently, after several indications, if the person does not pay, the STI initiates recovery actions in accordance with the available powers. We strongly remind you to apply for a tax loan in any more complicated situation, ”says the STI representative.

By 2019 355 thousand population declared payable 192 million. The amount of GPM is 541 euros on average. For comparison, a year ago 402 thousand. declared population 178 million. 443 EUR per GPM to pay.

848 thousand The population recovered the funds last year, for 2019. An overpayment of 185 million euros from GPM was declared. On average, 218 euros were returned to these neighbors, the STI announced last week.

Support requests can be submitted

The procedure and form of granting support under the GPM part do not change. Residents can support desired organizations, political parties, unions, or artists until May 3. Last year, more than 470 thousand. allocated about 20.1 million LTL to support the population. euros.

“Along with the filing of income statements and the payment of both the recovery from the GPM, there is always another work going on: residents can present their decision to the STI to provide support to beneficiaries, political parties, unions, artists.” , recalled S. Aliukonytė – Šnirienė.

This must be done in time, before May 3, otherwise the request would not be valid. To apply for aid, income must be declared.

This year is the last for which paper applications will continue to be accepted; Starting next year, grant applications will only be submitted electronically.

Taxes may be deferred due to a pandemic

For freelancers who are included in the list of victims of COVID-19 prepared by the STI and for people who do not carry out any activity until June 30. there are fiscal aid measures: to date, tax arrears that arise from January 1. Until April 30, no interest will be charged nor will the recovery process begin.

“If the population affected by the pandemic cannot pay the resulting taxes, before April 30. they can apply to the STI for an interest-free tax loan contract ”, explains the STI representative.

People who are not included in the list of victims and who are also experiencing financial difficulties due to a pandemic can apply for tax assistance measures through My STI.

If the resident’s activity has not been included in the list of restricted activities of the NACE and the resident has not been included in the list of victims, but does not have the opportunity to pay taxes on time, you can request it from the STI and process the tax. arrears in installments at a convenient time.

The most common mistake is not indicating income

The STI cautions that residents sometimes have to review submitted returns. The most common mistakes are:

• not all income from individual activities is reported;
• residents forget to report real estate rental income received from an apartment, house, or rented land;
• tuition fees are declared even if they have already been declared by another family member;
• Life insurance costs are reported when the beneficiaries are adult children, grandchildren, or others. Only contributors may declare and when the beneficiaries are the contributors themselves or their spouses, or their minor children (adopted children, guardians);
• life insurance benefits are declared by the population as non-taxable income, although they are often taxable, etc .;
• residents report expenses not only for auto and home repair services rendered, but also for property.

  

  © DELFI / Orestas Gurevičius

Hundreds of thousands of residents enjoy the benefits
The ITS data shows that many residents used the benefits. Last year, when reporting income for 2019, the most popular benefit, for life insurance premiums, was used by 273,000 people. population.

52.8 thousand Residents took the opportunity to recover a part of the mortgage interest paid.

Another popular benefit is recovering GPM for tuition fees, here 45.7 thousand. Residents recovered the income tax paid.

Last year, GPM was recovered both for car repair services (used by 14.4 thousand), for building repair services (for 7 thousand inhabitants) and for babysitting services (for 377 inhabitants).

Consultations – by phone

During the filing period, telephone specialists will provide telephone consultations and help complete returns by calling 1882.

“Residents who subscribe to the phone number authentication service in My STI account will receive inquiries faster during the call, because the system will recognize the caller and give him priority,” emphasizes S. Aliukonytė – Šnirienė, adding This system is designed to identify residents already using STI electronic services and STI consultants can help them faster.

Innovation is an additional features

STI has introduced and is in the process of introducing additional new features to EDS this year. Expense reports can now be submitted using the installed wizard.

With this principle in mind, this year we introduced a new wizard to complete the expense statement, thanks to which residents have until February 15th. reported expenses (PRC912) for them in 2020. provided housing, auto repair, or childcare services for minors. The Expense Notification Wizard also works on a question and answer basis, and the data provided will be transferred to the income tax returns, so it will no longer be necessary to enter it additionally when declaring income ”, explains S. Aliukonytė – Šnirienė

EDS functionality has been improved and an additional section, “Reports”, has been created that provides access to reports that will help accountants, company managers to discover inaccuracies, review monthly or annual data. The Returns and Submitted Files report is used to view the lists of submitted returns and return files.

STI intends to install more additional features in the near future. These include a report on unsubmitted and unspecified returns, where residents will be able to review mandatory but unsubmitted or unspecified misstatements. Accountants will receive the long-awaited opportunity to export a certificate of income and expenses in Excel format

The restriction on the benefit of the first higher education or first professional qualification has been eliminated. The tax credit will apply regardless of whether the resident paid for tuition or vocational training. Students will be able to take advantage of this benefit by completing the income statement for 2020 already this year.