ECONOMY

Expansion of standard debt payment plan

expansion-of-standard-debt-payment-plan

It will soon be possible to rearrange all debts to the tax authorities by entering the new standard settlement mechanism providing for twice as many installments as the existing one, according to the tax bill tabled in Parliament on Tuesday.

As of 2020, debtors will be able to rearrange income tax, Single Property Tax (ENFIA) and value-added tax (VAT) debts in 24 tranches, even if that debt concerns previous years.

It will be possible to settle any old or new debts stemming from inheritance tax or fines in 48 installments.

This is the amendment attached to the tax bill after the public consultation, changing the original text that had provided for the doubling of tranches only for debts created as of 2020.

This way the government hopes for the inclusion of 3.2 million state debtors in the standard payment scheme.

It also sets some safety clauses so that debtors do not abandon the existing payment mechanisms (of 100 tranches introduced in 2015 and the new 120-tranche program) they have already signed up for.