Revenue generated by the Tax Department in 2022 reached €6 billion, as reported in the Annual Report released on Monday, June 19th. Specifically, the total revenue for the Tax Department in 2022 amounted to €5.98 billion, reflecting an increase of €967.9 million or 19.3% compared to 2021. In 2021, the total revenue of the Tax Department was €5 billion.

According to the report, the increase in revenue for the Tax Department in 2021 was expected due to the economic recovery from the impact of the pandemic on both consumption and business activities. Additionally, there was a clearance of delayed work for income tax, resulting in the mass imposition of taxes and payment obligations. The clearance of delayed work extended up to 2018.

The largest increases in revenue in absolute numbers were observed in the following areas:

-Income Tax collections exceeded €2.3 billion, recording an increase of €343.4 million compared to 2021. Apart from the clearance of delayed work, there was continued increased payment of PAYE (Pay As You Earn) by the General Accounting Office, following the gradual reduction of the Salary Deduction Rate in the public sector in 2022.

-Value Added Tax (VAT) collections exceeded €2.2 billion, showing an increase of €277.7 million compared to 2021. A significant part of this increase came from the Wholesale and Retail Trade sector, the Construction sector, and Accommodation and Food Service Activities.

Regarding VAT collected at Customs, the revenue amounted to €731 million, indicating an increase of €198.8 million.

It is worth mentioning that Casino Tax revenue increased by 181% compared to 2021. The revenue rose from €4,853,202 in 2021 to €13,633,124 in 2022. Since its introduction in 2019, Casino Tax revenue has surpassed €39 million.

Additionally, besides the aforementioned revenues, the Tax Department collects contributions to the General Healthcare System (GESY) on a monthly basis, which are not included in the department's revenue as they are transferred to the Health Insurance Organization (HIO). In 2022, contributions to GESY amounting to €64.2 million were collected. The corresponding contributions collected in 2021 amounted to €50.6 million.

The Tax Commissioner is responsible for imposing and collecting the 0.4% Central Body Equitable Distribution Levy. The revenue generated from this levy, amounting to €3.03 million in 2022, is not included in the Tax Department's collections as it is accounted for by the Central Body Equitable Distribution.

Furthermore, it is noteworthy that the revenue of the Tax Department has increased by 71% over a decade (2013-2022). In 2013, revenue amounted to €3.537 billion.

The rate of change in tax revenue for the Tax Department from direct taxes and VAT in 2022, compared to the previous four years, is as follows:

Online payments accounted for 91% of total tax collections in 2022, marking a significant increase compared to 82% in the previous year and 66% in 2018. It is important to highlight that tax liabilities can now be settled digitally through various channels, including JCC, banking institutions (VAT), and internet banking (VAT and Settlement of Overdue Tax Liabilities). This upward trend clearly demonstrates that a majority of citizens have embraced online transactions for their financial matters.

The total tax liabilities owed by both legal entities and individuals to the Tax Department amount to €3.3 billion as of December 31, 2022. This figure encompasses all types of taxes, including interest and charges. Notably, this represents a 22% increase compared to the previous year, where the total tax liabilities were nearly €2.8 billion.

According to the report, the immediately collectible debt, prior to the implementation of collection measures in December 2022, amounted to €1.79 billion, inclusive of interest and charges. This is an increase from the corresponding figure of €1.5234 billion recorded in December 2021.

Furthermore, the total taxes subject to collection measures in December 2022 reached €757.9 million, compared to €696.8 million in December 2021.

In terms of outstanding taxes, the net collectible amount, prior to the application of bank account seizure measures in December 2022, stood at €1.0122 billion, showing a significant increase from the €774.6 million mark in 2021. The net immediately collectible tax amount, without collection measures, as of December 31, 2022, amounted to €1.0097 billion. It is important to note that these figures also include amounts related to unsettled plans within the process of settling overdue tax liabilities.

During 2022, a total of 5,441 new settlements were created, indicating a 3.56% increase compared to the 5,254 new settlements in 2021. These new settlements in 2022 involved a combined tax amount of €40.9 million, with a final tax amount after deductions of €33.7 million.