Tax Office: Everything you need to know about debt settlement

Hundreds of thousands of citizens and businesses are facing accumulated debts to the Tax Office, chasing one regulation after another in order to avoid seizures and auctions of assets. In total, the debts to the Tax Office are about 105 billion euros, while if the debts are added to these to the insurance funds, but also the fines and surcharges, then exceed 200 billion euros. The Ministry of Finance during the coronavirus pandemic applies various regulations and suspensions in order to facilitate taxpayers, who due to the new conditions are unable to cope in their obligations to the state. The current regulations are many and varied, while many are those who, while they have joined the previous favorable regulations such as the one of 120 doses, risk being found out. “Sunday’s Step” gathered the most common natural and legal questions for all the options provided today for the repayment of debts to the Tax Office, but also those that have been announced and will be valid from May 2021.1 What can the State debtors who have not yet joined any regulation do? , new and old, taxpayers have at their disposal the permanent debt settlement in up to 48 installments. Debts from regular liabilities, such as personal income tax and ENFIA, can be settled in up to 24 monthly installments, while contingent tax debts (eg inheritance tax) can be settled in up to 48 monthly installments.2 Which Debts are subject to the new fixed regulation? The regulation obligatorily covers all the confirmed and overdue debts to the Tax Offices / Control Centers that at the time of submission of the application have not been settled legally with suspension of payment for any reason, or other regulation of partial payment by law , or a court decision, or an interim injunction. However, certified non-arrears on the date of application, debts or installments of debts and certified and overdue, on the date of application, debts that are suspended payment may be subject to optional.3 What are the conditions for Debtors must have submitted income tax returns and value added tax returns of the last five years by the date of application (on time or overdue). The remaining overdue debts of the applicant which are not subject to the regulation of the present must have been repaid or settled in a legal way (by other arrangement or suspension of payment). 4 What does the number of installments depend on? In order to be included in the settlement of debts that are settled in up to 24 installments, the viability of the settlement must be proven. Sustainability is presumed from the data stated in the responsible declaration. In any case, there is a limit to the minimum monthly installment amount which is 30 euros.5 When does one lose the fixed arrangement and what are the consequences? The arrangement is lost, resulting in the obligatory immediate payment of the debt balance according to the confirmation data and the immediate pursuit of its collection with all the measures provided by the current legislation, if the debtor: l Does not pay on time a installment of the arrangement more than once.l Does not pay any overdue installment of the arrangement with the corresponding surcharge (15% ) until the expiration date of the next installment payment.6 Can a person who has not been subject to the 120-installment arrangement now be included for the first time? The 120-installment arrangement can no longer be covered by a debtor. The membership deadline has expired. Exceptions will be debts to the Tax Administration resulting from the repayment of loans granted with the guarantee of the Greek State. These debts can be settled in 120 monthly installments, with an escalating program of exemption from surcharges and overdue interest.7 When are those in the 120 installment arrangement at risk of being left out? According to the forecast, the main reason for losing the 120 installment arrangement , resulting in the mandatory immediate payment of the debt balance, is if the debtor does not pay two consecutive monthly installments of the arrangement or delays the payment of the last two installments of the arrangement for the respective period and does not repay or settle or settle legally debts for the entire duration of the regulation within two months from the expiration of their payment deadline or within two months from the date of application for inclusion in the regulation, if the payment deadline has passed before joining it.8 Taxpayer who had joined the regulation 100 or 120 doses and belongs to those affected by the coronavirus pandemic not Mrs. set the installments of the regulation in the months March to June 2020, taking advantage of the possibility of suspension of payment. What will happen to these installments? The payment suspension period ends on 30/4/2021. The above installments will be added, from May 2021 onwards, at the end of the installments of the original arrangement.9 A taxpayer affected by the economic effects of the pandemic had joined the arrangement of 120 installments, but was unable to pay two installments of March – October 2020 and lost the regulation. What options does it have? From November 2020 it will continue to pay normally for the regulation, which is revived with all its benefits. The installments that have not been paid are added at the end of the installments of the initial arrangement.10 For the debts that have been suspended for the financially affected and concern the period March – June 2020, is a new special regulation introduced? These debts have been suspended until the end of April 2021 and can then be settled either interest-free in up to 12 monthly installments, or at an interest rate of 2.5% from 13 to 24 monthly installments. They can of course be included in the fixed arrangement that is offered, but it is not in the interest of the debtor. The interest rates that burden the debts For debts that are regulated in up to 12 monthly installments, the interest rate today is 4.7% and is determined by the average loan interest rate mutual accounts issued to non-financial corporations which currently amounts to 4.45% plus 0.25%. If the installments are more than 12 then the base interest rate (4.45%) increases by 1.5% and finally forms at 4.95% per year. Follow it on Google News and be the first to know all the news See all the latest news from Greece and the World, at

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