Undeclared apartment rents? Businesses have until October 20 to submit contracts or ownership documents

Apartments rented for business, but not declared as such, will now enter the tax regime.

Within October 20, businesses must declare to the tax administration the ownership status or the lease contract of the premises where they exercise their economic activity.

The tax administration has sent a letter to businesses reminding them of this obligation, as otherwise they will face penalties.

Depositing or updating these data, from the personal account to e-filing, must be completed by each taxpayer, that is, by each NIPT, both for the main and secondary addresses. Taxpayers must submit the relevant documentation that proves the declaration, such as the ownership document, the tenant's contract, etc.

According to taxes, this information serves for the correct calculation of the Withholding Tax as well as the creation of the opportunity to prefill the Declaration of personal income, for the individuals subject to the declaration.

But on the other hand, it is also an indirect method to "target" those apartments that are rented for business units but have not been declared as such by their owners, in order to avoid the tax on rents, which is at the level of 15 %.

Since businesses will now be obliged to make this declaration and will have to have regular contracts with the owners of these units, they will automatically be included in the tax system.

The government anticipates that the income from the rent tax will have a progressive increase from year to year, where from 487 million ALL projected in 2024, to exceed 1 billion ALL in 2025, to reach 1.5 billion ALL in 2027 .