Taxpayers who received retroactive payments from salaries, pensions, dividends or benefits will need to submit amended tax returns during 2026, through a special electronic platform by the Independent Authority for Public Revenue (AADE), which is expected to open after Easter. According to the related decision, retroactive payments are declared through amended returns for each year they concern. For example, retroactive payments for 2022 will be declared with an amended return for the year 2023.
In retroactive payment declarations, the amounts are pre-filled in the corresponding codes and there is no possibility to modify other elements. Those who wish to make changes to other data in their declaration must submit a separate amended tax return. Tax is calculated based on the income tax scales and special solidarity contribution that were in effect for each year, after deducting any income taxes withheld at a 20% rate during payment of the retroactive amounts, and the debt must be paid in full by January 31, 2027. However, pensioners have the option, upon request, to settle their debt in up to 48 interest-bearing monthly installments, based on the standing arrangement.
Specifically, employees, pensioners, farmers and other categories who received retroactive payments in 2025 should know that:
- Amended income tax returns submitted by employees or pensioners with retroactive salaries or pensions from previous years, retroactive unemployment benefits, compensation for NHS doctors from afternoon hospital clinics, are accepted without penalties and interest, until the end of the tax year in which the salary or pension certificates were issued, as applicable.
- Retroactive amounts received by shareholders of the Army, Navy and Air Force Stock Funds and the Special Accounts for Strengthening Army, Navy and Air Force Shareholders are taxed in the year of payment at a tax rate of 20%.
- Amended returns concerning amounts of agricultural aid and subsidies received retroactively following an objection or court decision and chosen to be taxed in the year to which they relate, are submitted using the online declaration submission service through the myAADE digital portal from tax year 2020 onwards, while for tax year 2019 and earlier they are submitted or sent by the prescribed methods to the competent service for receiving the declaration.
- From tax year 2015 onwards, retroactive declarations are submitted electronically by selecting the corresponding year of declaration submission, e.g. for tax year 2022 you will select 2023 as the declaration submission year. Then, you select Amended Declaration and Retroactive Declaration E1. After the codes appear filled with the new amounts, you submit the declaration definitively (on time by 31/12/2026). Retroactive payments from previous years will be declared with an amended declaration to the competent service for the years they concern.
- In case of handwritten salary certificates for retroactive salary amounts, the option is active for taxpayers for whom electronic information exists for retroactive salaries from tax year 2015 onwards. Otherwise, the declaration is submitted to the competent service.
