BUSINESS

Standard mechanism for tax payment to rise to 24 tranches

PROKOPIS HATZINIKOLAOU

TAGS: Taxation

The new framework for the standard arrangement of dues to the tax authorities, currently under discussion between Finance Ministry officials and the creditors’ technical staff, provides for more installments and stricter criteria for eligibility.

The government’s proposal may secure a greater number of tranches than the current standard settlement mechanism of 12 for debts from regular taxes and 24 from extraordinary obligations, but the country’s creditors are insisting on the introduction of income criteria for debtors to secure the maximum number of installments.

Sources say the government’s plan provides for the payment of regular debts (from income tax, property tax or value-added tax) in 24 tranches (down from 36 in the original blueprint) and the repayment of extraordinary dues (such as inheritance tax) in up to 48 installments under certain conditions related to incomes. The number of installments will depend on the declared income as well as on the content of the bank accounts of those asking for an arrangement for their regular tax payment.

It is very likely the two sides will complete the interventions to the standard arrangement in this assessment cycle for the new clauses to be added to the bill that will be submitted to Parliament next month and start applying as of January.

Meanwhile, the Finance Ministry and the Independent Authority for Public Revenue are preparing an advertising campaign for the one-off settlement of debts to the state in 120 tranches in a bid to attract as many debtors as possible. Borrowers will be informed about the favorable settlement on offer in email and text messages asking them to join it.

Sources add that the government is considering extending the deadline for entering the 120-tranche repayment mechanism beyond September 30.

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