FINANCE

Tax debts of 2.26 bln due soon

tax-debts-of-2-26-bln-due-soon

Accumulated debts of 2.26 billion euros, dating from March 2020 to July 2021, will unfreeze at the end of the year and come due for more than 800,000 taxpayers harmed by the pandemic.

Debtors have the option of paying off their dues in a lump sum or applying for a payment plan of 36 interest-free tranches or 72 installments with interest. The platform created by the Independent Authority for Public Revenue (IAPR) for taxpayers wishing to pay their dues this way has already opened, with the deadline for admissions to the system set at December 31.

IAPR data show that more than 12,000 taxpayers have already entered an arrangement, with 5,500 choosing the 36-tranche plan and the rest opting for more installments, with interest. Those 12,000 have already paid their first tranche, while the second is due by end-November.

The law states that for debtors to enter the favorable arrangement they must first settle previous arrears and continue paying off any others created in the meantime.

The minimum monthly tranche is set at €30 for debts up to €1,000 and €50 for those in excess of €1,000. 

The payment plan of up to 72 installments concerns tax debts created between March 1, 2020 and July 31, 2021, and debts whose payment deadline was extended or whose collection was suspended until December 31, 2021 in the context of mitigating the effects of the pandemic. Applications for the 36- or 72-tranche program can be submitted online until the end of the year. The program does not concern debts that are already covered under another arrangement.

Eligible debtors are: workers whose contract was suspended at any point in the 17-month period due to the pandemic or who received special-purpose compensation; those who joined the labor subsidy mechanism “Syn-Ergasia;” landlords who collected reduced rent at any point between March 2020 and July 2021 and have been compensated; people registered as unemployed with the Manpower Organization (OAED) over the 17-month period.