New framework for tax debt settlement



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The Minister of Finance, Mr. Chr. Staikouras, announced a few hours ago the new framework for debt settlement with the tax authorities.

Watch the relevant video:

The corresponding press release:

Greek republic
Ministry of Finance
Victory 5-7
10180 Athens
PRESS OFFICE
Tel: 2103332644
email: [email protected]

Thursday, October 8, 2020

Press release

Statement by the Minister of Finance, Mr. Christos Staikouras

“Since last March, the coronavirus pandemic has tested the resilience of homes and businesses.
The Government responded quickly, methodically and effectively to the need to support society, implementing a coherent but at the same time dynamic plan to face the effects of the health crisis.
A plan that, among other things, gave from the beginning, and then expanded, the possibility of suspending the payments of tax obligations, as well as the installments of regulated debts, so that citizens affected by the economic consequences of the crisis can “breathe” for a long time and be helped, so that they can get back on their feet.
The Ministry of Finance, deeply aware of the difficulties that the coronavirus pandemic causes and continues to cause in the real economy, today announces a new framework for the settlement of tax debts, with which the State tends to “help” households and companies, providing very important facilities to meet their obligations.
A framework that provides solutions not only for debts created in the period March – June 2020, when we had to take measures to stop or drastically reduce economic activity in order to protect public health, but also for debts before and after of the blockade.

Specifically, we provide:
First New regulation for the reimbursement of current tax liabilities for the period March – June 2020.
2nd Reactivation of the pre-existing arrangement for debtors affected by the pandemic, who could not pay their installments and lost it between March and September 2020.
Third Settlement of 120 installments for the repayment of debts derived from loans guaranteed by the Greek State.

In detail, we proceed to the following interventions:

First intervention: A new regulation is introduced, which affects all natural and legal persons that have been economically affected by the coronavirus pandemic and allows them to include in it all their unregulated debts with the Tax Administration, which were created during the March period – June 2020, in very favorable conditions.
These debts, which are suspended until April 30, 2021, can be settled, as of May 2021, in 12 installments without interest or in 24 installments, with a very low interest rate of 2.5%.
At the same time, we remind you that all taxpayers have the opportunity to join the permanent arrangement of 24 or 48 installments, for all their outstanding unregulated debts.
But it will also support taxpayers affected by the pandemic, who had paid off their debts, and were given a suspension of payment until April 30, 2021 for quotas from March to June 2020.
The fees that have not been paid will be added, as of May 2021, to the end of the initial settlement fees.

2nd intervention: All those who have been financially affected by the pandemic and have lost, for any reason, the partial settlement of the debt or the extrajudicial settlement between March and September 2020, can continue to pay the settlement normally as of October 2020.
This arrangement is revived with all its benefits and the installments that were not paid will be added as supernumeraries after the last installment.
Likewise, all those who lost their settlement from November 1, 2019 onwards, and who are prohibited from re-settling their debts, now have the opportunity to join the permanent settlement of 24 or 48 installments.

3rd intervention: Debts with the Tax Administration, derived from the repayment of loans granted with the guarantee of the Greek State, can be settled in 120 monthly installments, with a progressive program of exemption from surcharges and late payment interest.

With the previous interventions, the Government deals comprehensively, in essence, with social sensitivity and justice, the issue of debts with the Tax Administration in the current unprecedented situation, maintaining the necessary and valuable culture of payments.
The Government is demonstrating in practice, once again, that it is constantly on the alert and is taking the appropriate measures so that the economic impact of the health crisis on homes and businesses is as low as possible.
And the temporary difficulties must be followed, as soon as possible, by a dynamic recovery ”.

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