What should residents know about this year’s income declaration?

According to the data of the State Tax Inspectorate (VMI), for 2023 44 thousand declared income. Population of Alytus county: 10 thousand. those who declared should pay 2.4 million to the state. EUR GPM, and 29 thousand. will recover about 11 million euros. What is the most important thing for residents to pay attention to when declaring their income this year, he says Head of Kaunas County State Tax Inspectorate Judita Stankienė.

What dates should residents remember?

• This year, the deadline for declaring income and paying taxes is May 2. Property declarations, which civil servants, politicians and their spouses are usually required to submit, are also submitted by May 2. VMI will return overpayments to residents on time, ie by July 31.

Remind me who is required to submit income and property declarations?

• As last year, the income until 2024 May 2 residents who:

• carried out individual activities with a certificate or had acquired business certificates (even if they did not receive income);
• wants to take advantage of the GPM benefits;
• want to recover an overpayment due to the application of less than the full amount of Non-Taxable Income (NPD) or those who have been applied too much NPD and must therefore pay part of the GPM;
• earned so much that the amount of annual income exceeded the set amount of VDU;
• profitably sold a vehicle that has not been owned for 3 years or real estate that has not been owned for 10 years;
• received interest on loans from banks, companies, interest of more than 500 euros on deposits and non-equity securities according to contracts concluded since 2014;
• received rental income from residents;
• having received gifts worth more than 2,500 euros from relatives (in money or movable objects) or gifts worth more than 2,500 euros from other residents;
• having received any income from a foreign country, etc.;
• persons who want to allocate part of their paid GPM support, although according to other criteria, they are not required to submit declarations;
• occupy relevant positions: ie politicians, civil servants, etc., who have to submit not only income declarations, but also their property declarations for 2023. positions held.

How to submit an income declaration?

• Income and property declarations should be submitted electronically – connect to Electronic declaration systems (EDS) in which some data is already loaded. For a large part of the population, the declarations will only need to be reviewed and submitted. Those who do not have the opportunity to submit the declaration electronically can come to the VMI branch by registering in advance. You can consult on declaration issues by calling +370 5 260 5060.

It is worth noting that in order to provide residents with a simple and smooth income declaration process and convenient access to VMI consultations, a remote group session service is organized for residents. During remote group events, participants are invited to connect to EDS and, together with a VMI specialist, fill out income declarations step by step with the help of the declaration wizard. The schedule of the next sessions is publicly announced on the VMI website.

Who can recover the GPM overpayment and for what?

• A tax overpayment occurs in cases where residents pay insurance premiums for themselves, their spouse, minor children or disabled children over 18 years of age under life insurance contracts; pension accumulation contributions; interest on a home loan (taken before January 1, 2009).

Also in cases where residents pay for studies, during which the first higher education is acquired or the first qualification is granted, or they repay the loan received for studies. If the student does not have the opportunity to use this right, his parents or spouse can do it for him.

Is there a rush to file income returns for those who want to recover income tax overpayments faster?

• Please note that currently the largest number of declarations are submitted by those residents who want to recover overpayments, but there is no need to hurry – overpayments can be returned after declaring income even after the deadline. Income tax overpayments will traditionally be transferred to residents by July 31. The most important thing is to submit income declarations by May 2. submitted by those residents who are required to declare income.

What are the most common mistakes made by residents, and if they are not specified in the annual income declaration, VMI cannot return the GPM overpayment in the usual way?

• Residents are advised to always review the third-party certificate in the first window of the wizard before submitting the declaration – View 2022 certificate card.

The most common mistakes when an overpayment is not returned in the usual way:

• Residents do not declare all income tax-reducing expenses (GPM submits declarations at the beginning of the year, when third-party sources are still correcting their data);
• Provides incorrect data on expenses incurred (residents declare expenses that cannot reduce taxable income, e.g. insurance premiums are paid by other persons, premiums are not for cumulative insurance, insures grandchildren);
• Declares taxable income as non-taxable (due to received non-taxable insurance benefits that must be taxed);
• Residents incorrectly declare the purchase price of the sold property (it does not match information from third-party sources);
• Residents do not declare all income (for example, they forget to declare income from the sale of real estate, income from the sale of cars, the sale of financial instruments, income from individual activities).

What to do if the declaration is rejected due to inconsistencies?

• In case of inaccuracy, you should first contact the person who submitted the data to correct the error. VMI always informs the resident about discrepancies – in the EDS section “Notices”, the resident receives a detailed report on the errors found. Residents also receive information about identified inaccuracies by e-mail. by mail, if it is specified in EDS, and for those who did not specify it or do not use the system, by classic mail.

Currently, some residents receive SMS messages about prepared declarations. How to identify that it is a scam email?

• Fraudsters have been taking advantage of the active declaration period for our customers for many years, so we invite residents to be extremely vigilant. Please note that VMI does not send e-mail notifications to residents. by mail or SMS message with the personal information of their residents, personal code, amounts to be paid, and a request to recover the overpayment. There are also no links in VMI SMS messages.

We recommend that you do not click on the links in SMS messages and in any case check all personal information related to payable taxes, overpayments, submitted declarations, received notifications and fines only by independently logging into My VMI via the official VMI website www.vmi.lt, connecting directly to Electronic declaration systemrather than clicking on links or QR codes in the message.

VMI constantly informs about new detected fraud attacks, in addition, we have provided detailed information on our website on what to do if you receive a suspicious message from VMI and how to distinguish possible cases of fraud. You can find it on the VMI website www.vmi.lt > section “I received a suspicious message from VMI”. We also recommend following the news at VMI „Facebook“ account where we share examples of fraud sent by customers.

Are there innovations in support?

• The principle itself does not change, requests to allocate part of the GPM support are submitted only by e-mail. way, with the help of a wizard specifically designed for this purpose in the electronic declaration system EDS – the most important thing is to do it before May 2. The only change is that from this year, residents will be able to allocate up to 0.6 percent to political organizations (ie, not only political parties, but also political committees).

How much support can be given and to whom?

• Beneficiaries, including artists, can be allocated up to 1.2 percent. income tax, for political organizations – up to 0.6 percent, and for trade unions or their associations – up to 0.6 percent. Part of the GPM can be allocated for support only to persons with the status of a beneficiary and to political parties that meet the requirements. Residents can always check this before applying VMI on the website. According to one submitted application, a portion of the income tax can be transferred for five consecutive years – for the previous and four subsequent tax periods. If the resident has already submitted the application in the previous year, it is not necessary to resubmit or revise it.

How to apply for a part of the paid GPM for support?

• Residents who paid GPM last year (independently or by an employer) from their income (salary, property sold at a profit, income from self-employment, etc.) can allocate part of GPM for support. From 2022 the application for allocating part of the paid GPM for support can only be submitted through EDS, which is assisted by the support allocation wizard. This wizard helps the user conveniently and without errors to find the desired recipient and his data, to choose the amount of support allocated more quickly and easily and to submit the request itself – correctly and the first time. It is important to remember that the request for allocation of the GPM portion will be fulfilled only if the resident submits it on time – by May 2. through EDS, and will also, if required, submit income tax returns correctly and on time and pay the estimated tax.

Thank you for the conversation.

All information about the declaration is available on the VMI website at www.vmi.lt > I am interested in declaring income and assets and by submitting questions to the digital assistant Sim. You will find detailed guides on how to fill out the income declaration VMI Youtube channel, where a thematic playlist of relevant seminars is also prepared. News is published in VMI Facebook and LinkedIn accounts.

ADDITIONAL INFORMATION

Declarations submitted in Alytus county until m. March 28 (for tax period 2023)

Kaunas County State Tax Inspectorates information