New standard plan for tax dues

New standard plan for tax dues

The new online platform for state debtors to have their dues arranged for settlement in 24 to 48 monthly installments will open on February 26.

As of that date, taxpayers who meet the requirements can join the new arrangement program that provides for twice as many tranches as the previous one, known as the standard settlement.

According to the Finance Ministry’s decision, those with confirmed debts to the tax authorities, inspection centers or customs can enter the new standard payment program (involving 24-48 installments) provided they had not entered an arrangement for payment in tranches before November 1, 2019. Therefore, debtors who entered the standard arrangement (12-24 tranches) after November 1 can enter the new one, which allows them to pay off their debt in twice as many installments. In contrast, those who entered the standard mechanism in October cannot shift to the new settlement program, as the 120-tranche mechanism also existed up until then. The reasoning for this is that since they did not join the major plan with up to 120 installments back then, they should not be allowed to enter the new standard mechanism now.

The ministerial decision notes that, through the new arrangement, taxpayers can also settle debts that are not overdue, besides any expired dues they may have.

To enter the standard debt settlement program (up to 24 tranches) a debtor will have to submit a formal declaration stating their entire set of assets, arrears to third parties as well as information on dues to social security funds or other state entities. Their income, both current and anticipated, has to be declared too.

The exact number of tranches for debt to be settled in up to 48 installments (concerning extraordinary debts such as inheritance tax and fines) is determined based on each debtor's capacity to repay, but with a minimum payable amount of 50 euros.

Upon entering the mechanism, a taxpayer is protected from any confiscation of assets by the tax authorities. However, any cash amounts credited to the debtors’ bank accounts will be automatically confiscated for the payment of the monthly dues that the mechanism provides for.

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