The regulation of debts from 36 to 72 instalments for overdue tax debts amounting to 2.26 billion euros and the provision of a second chance to individuals and legal entities was presented by the Finance Minister, speaking in Parliament.
“Since the beginning of the health crisis, the Ministry of Finance has been acting with quick reflexes, taking timely measures to minimize the impact of its effects and accelerate the return to growth. We are helping households and businesses affected by the pandemic to meet their obligations through a series of interventions“, he said.
As he said, this is a bold new regulation of tax and insurance debts created during the pandemic, in agreement with the institutions, which will be immediately legislated. He also said that debtors are provided with facilities, as the existing framework for settling their debts is extended, expanded and improved.
In this context, the regulation includes interventions which:
1. The time horizon for covering debts is extended from March 2020 until today.
2. The number of instalments is increased from 24 interest-free instalments to 36 and from 48 instalments with low interest rate to 72.
3. Beneficiaries are expanded to include all those affected at any time from March 2020 to date.
For the same debtors, it is possible to revive all types of debt arrangements, by paying the August instalment and transferring the outstanding instalments to the end of the arrangement period.
Specifically, according to skai.gr, the tax obligations include VAT, ENFIA, income tax, etc., but also insurance debts that can be settled in 72 instalments with an interest rate of 2.5% or 36 instalments without interest and with payment of the first instalment in January 2022.
The regulation concerns businesses and individuals affected by the coronavirus and debts created during the pandemic and covers 78% of businesses and freelancers in the country.
Beneficiaries
1. Businesses included in the extended list of the April 2020 CDOs.
2. Employees who are on work suspension or on Co-Work
3. Property owners who have received a reduced rent and have filed a Covid return
4. Unemployed persons registered in the OAED during the period of the coronavirus.
In conclusion, the Finance Minister pointed out that the regulation is expected to benefit 134,455 legal entities, 392,785 natural persons engaged in business activity and 299,195 natural persons not engaged in business activity, who have accumulated €2.26 billion in unresolved arrears to the tax administration and belong to the eligible categories of defaulters.
