Amassed dues payable from January 2021

Amassed dues payable from January 2021

Next month the Finance Ministry will table in Parliament the regulation about the accumulated obligations of taxpayers due to the crisis, which will be repaid in 12 interest-free tranches next year or in 24 installments in 2022 with a low interest rate.

The new scheme will address the arrears generated by the health crisis, with debts amounting to over 2 billion euros from businesses, freelance and self-employed professionals, salaried workers and others for the period from March to September. The payment of those dues has been suspended until January 2021.

The measure concerns enterprises that were temporarily shuttered by state decree, those that belong to the categories of sectors hurt most by the pandemic, workers in suspended labor status, property owners receiving only 60% of the rent due, etc.

The taxpayers concerned may apply from end-October for entry in either of the two payment plans on the special platform that will be launched by the Independent Authority for Public Revenue. The settlement measure will concern all dues to the state, regular (such as value-added tax) or extraordinary (such as inheritance tax). The interest rate for those choosing to pay in 24 tranches will be between 2% and 2.5%.

Meanwhile minister Christos Staikouras told state broadcaster ERT on Tuesday that the amendment to reduce the corporate income tax deposit will clear Parliament on Wednesday, allowing the IAPR to incorporate the reduction in tax notices over the first 10 days of August.

This means that businesses will pay the first tranche of their income tax without factoring in the deposit reduction, which will range between 30% and 100%. According to a ministry official, the ministry’s agencies are in the process of data collection so as to calculate the reduction due per enterprise. Once the data has been collected, the tax authorities will reprocess the tax declarations and then send to corporations the new tax notices with the reduced tax deposit and the additional tranches for the payment of dues.

This year companies have to pay their income tax in eight installments, the first one being due by Friday and the last on February 26, 2021. However, there is also the option of paying the first and the second tranche together at the end of August, without penalty.

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