Incentive for dues repayment
The Finance Ministry, in collaboration with the Independent Public Revenue Authority (AADE), is planning for the reduction of the withholding rate for those who have debts to the state and collect money or proceed with the sale of real estate. The reduced withholding will only concern those who are consistent with debt arrangements and pay their installments regularly.
According to the plan, from the 70% that currently stands, the withholding rate will decrease below 50%. This means that in the event someone needs clearance to collect money from the state, for example, instead of withholding 70%, a percentage of 50% or less will be withheld, which will also erase part of the debt.
Based on the proposal being considered, in order to reduce the withholding rate, a number of conditions should be met, such as, for example, that no installments have been missed, that the debtor does adhered to debt arrangements, and they they are not suspected of tax crimes.
As long as the conditions are met, the withholding rate will be reduced to 50% and possibly lower depending on whether it is real estate sale or a money payment.
