Great interest in tax debt payment plan

Great interest in tax debt payment plan

The option of settling their debts to the tax authorities in a high number of installments and the opportunity to have their bank accounts unblocked is convincing more and more enterprises to enter the favorable payment program which allows them to settle their dues in up to 120 tranches.

According to sources, more than 318,000 individual taxpayers and companies have applied to join the program, and more than 500,000 debtors are expected to have done so by the September 30 deadline for entry into the the improved repayment scheme.

Since September 5, when the program’s online platform opened, some 17,000 debtors have entered the new mechanism, a figure anticipated to grow considerably as the deadline approaches. The capital under settlement amounts to 1.87 billion euros and the penalties add up to 604 million. In total, these debtors will pay 2.48 billion euros over the long term. About 258 million euros has been collected to date.

A Finance Ministry official has told Kathimerini that this makes life much easier for corporations with debts to the state, as they can pay off their dues in 120 tranches by paying a minimum installment of 230 euros per month, depending on the extent of their arrears. By the end of the year, the ministry expects to have collected more than 500 million euros via the debt repayment program.

The new payment scheme constitutes a golden opportunity for households and companies that want to settle their dues to the tax authorities. Not only does it allow for very small monthly tranches, but it also provides for the unblocking of bank accounts, the freezing of confiscations of income, deposits and assets, a significant haircut on interest and penalties, and even the possibility of including debts that emerge within this year from previous years’ statements submitted belatedly.

The improved repayment program provides for the inclusion of all debts that became overdue up to December 31, 2018, with a provisional 10 percent discount on interest and penalties. It allows for repayment of arrears in up to 120 installments for individuals and corporations for debts up to 1 million euros, and in up to 36 tranches for debts in excess of 1 million euros.

Subscribe to our Newsletters

Enter your information below to receive our weekly newsletters with the latest insights, opinion pieces and current events straight to your inbox.

By signing up you are agreeing to our Terms of Service and Privacy Policy.