ECONOMY

Tax dues to be settled without income criteria

tax-dues-to-be-settled-without-income-criteria

Any taxpayers unable to meet their obligations to the state in 2020 will be able to settle their debts in 24 installments without any income criteria, but at a higher rate of interest, according to a new Finance Ministry plan.

The plan foresees that the higher the number of installments in a debt settlement plan, the greater the rate of interest for the arranged debts. Therefore, interest up to the current level of 12 tranches will come to 5 percent, but if one chooses 15, 20 or 24 tranches, the interest for all installments will range between 6 and 6.5 percent.

There will be even more installments available, though linked to some income criteria, for debtors with inheritance tax debts, according to a bill the ministry is drafting. The amendment, which will go to Parliament this week, will provide for extraordinary debts (such as inheritance tax) to be settled in up to 48 installments, but then income criteria will apply.

The amount of each debtor’s income will determine the number of tranches for extraordinary arrears, using similar criteria to those employed for the settlement of debts to the state in up to 120 tranches. In that case, too, interest rates will range from 5 percent to 6.5 percent.