Year-End Tax Planning 2026: Actions Worth Taking Before 31 December

What Tax Planning Means (and What It Does Not)

Lawful tax planning is based on applying the rules correctly: recording expenses correctly, using deductions provided by law, settling outstanding matters promptly and forecasting liquidity realistically. It does not include creating fictitious documents, shifting revenue without a real transaction or actions without a business purpose. For example, contributing property to a company before its sale or rental may be challenged by the tax administration when it does not serve a real business purpose. Good planning protects the business rather than exposing it.

Action 1: Pay Outstanding Invoices Through a Bank

Check outstanding supplier and rent invoices. For purchases or services worth more than €500, cash payment is not recognised for tax purposes, while rent requires an electronic means of payment. Payment through a bank account or card ensures that the expense is deductible. It is also worth checking that every expense for the year has a legal document and is recorded in the books.

Action 2: Complete Documents and Classifications in myDATA

Make sure all documents for the year have been issued and transmitted, income and expense classifications are complete and any credit invoices have been recorded correctly. From 1 October 2026, mandatory electronic invoicing applies to all businesses, so check that your system or provider meets the new obligation. Discrepancies between myDATA and returns are among the most frequent points checked by AADE.

Action 3: Plan Inventory Stocktaking

If your business holds stock, plan the physical stocktake in good time and appoint people responsible for counting. From 2026, very small businesses with single-entry books may, subject to conditions, be exempt from mandatory annual stocktaking. However, if you voluntarily choose to carry it out, you commit to continuing it for the next three financial years, so the decision should be weighed before counting.

Action 4: Check Fixed Assets and Depreciation

Confirm that depreciation for the year has been calculated correctly using the prescribed rates. One practical detail: tax depreciation of a fixed asset starts in the month following the month in which it was put into use. An asset purchased and operating in December therefore essentially provides depreciation from the new year. Buying equipment in December does not, by itself, provide a tax benefit for the year ending, and the decision should be based on the business’s actual needs.

Action 5: Payroll, Christmas Bonus and Benefits in Kind

The Christmas bonus must have been paid by 21 December, so calculate the amount and required liquidity in good time. At the same time, total the benefits in kind each employee has received during the year (company phone, vehicle, insurance, vouchers). If their total value per employee exceeds €300, they are included in taxable income and must be reflected correctly in payroll.

Action 6: Corporate Changes and Tax Losses

If you are planning the entry of a new partner, a transfer of shares or another change to the company’s ownership, first check the consequences. A change in participation exceeding 33% within a tax year may restrict the carryforward of the company’s accumulated tax losses, while every change affecting the beneficial owner requires an update to the relevant register. If your business has losses from previous years, check which expire first so you can use them in time.

Action 7: Estimate the Result, Advance Tax and Liquidity

At the end of November, it is worth estimating the taxable result for the year. This gives you an early picture of the tax you will be required to pay, as well as the advance tax for the next year, which is paid together with the main tax. If your company is considering distributing dividends, remember that this requires approved financial statements and cannot take place before approval of the financial year, so planning concerns the following year.

Action 8: Settle Outstanding Matters Before Year-End

Year-end is the deadline for a number of outstanding matters:

• Applications for the arrangement of up to 72 instalments for old debts to the tax authorities and e-EFKA are accepted until 31 December 2026
• On 31 December 2026, tax cases from previous years become time-barred, and AADE has intensified audits and cross-checks, so it is worth checking that records for earlier years are in order
• POS interconnection with cash registers and VIES registration for intra-Community transactions must be up to date to avoid fines in the new year

An Example: An IKE in Mid-November

Suppose an IKE with three employees conducts a year-end review in mid-November and finds the following:

• A €1,800 supplier invoice remains unpaid. If paid through a bank, it is deductible normally. If paid in cash, it is not deductible and additional tax of €1,800 × 22% = €396 arises.
• Three documents have not yet been classified in myDATA and are completed before year-end.
• The Christmas bonus for the three employees is scheduled for payment by 21 December.
• Estimated taxable profit for the year is €60,000, so tax is €60,000 × 22% = €13,200. At the current advance tax rate of 80%, the advance payment is €10,560 and the total amount to provide for is €13,200 + €10,560 = €23,760.

With this estimate in November, the company’s management forecasts in good time the liquidity needed when the return is submitted, rather than discovering it from the assessment. The amounts are illustrative.

What Has Been Announced for 2027

At the 2026 Thessaloniki International Fair, a series of measures affecting business planning was announced, including a reduction in advance tax from tax year 2027 and the gradual abolition of the business levy for businesses. These measures are in the process of being legislated and the final terms may differ. Until they are passed, planning for the year ending must be based on current rates rather than announced ones.

The Most Common Year-End Mistakes

1. Paying outstanding invoices in cash above the €500 threshold
2. Failing to classify documents in myDATA and issue outstanding credit invoices
3. Buying equipment in December expecting a tax benefit for the year ending
4. Failing to forecast liquidity for tax and advance tax
5. Entry of a new partner or transfer of shares without checking the impact on tax losses
6. Waiting until the last fortnight of December, when most actions can no longer be completed in time