Firms can clear debts in 120 installments

Firms can clear debts in 120 installments

The system for the extrajudicial settlement of corporate debts between 20,000 and 50,000 euros provides for the repayment of dues in up to 120 tranches, along with the forgiveness of banks’ and tax authorities’ penalties for late payment.

The sole criterion for the entry of a business with debts of up to 50,000 euros into the repayment mechanism is a positive net result before interest, tax and amortization, and several enterprises are expected to use the last financial year, 2016, so as to improve their finances and satisfy the selection criterion.

Interested companies can apply online for the 120-tranche plan through the Finance Ministry’s Taxisnet using their keyword and password, and the system will automatically acknowledge whether they qualify for the mechanism.

The system for enterprises with debts in excess of 50,000 euros is also automatic but the solution will not be standardized, as there will be no across-the-board write-offs of delay penalties etc.

The Economy Ministry is expected to complete the six ministerial decisions required by end-July, with the aim being to have the online platform up and running from August 3.

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