The new arrangement for tax debts opens a window of convenience for millions of taxpayers and businesses still facing financial difficulties from previous years.
With the option of repayment in up to 72 monthly installments, the settlement plan concerns confirmed debts due by December 31, 2023, with the procedure remaining open until December 31, 2026, giving interested parties sufficient time to submit their application.
According to the provision of the draft law, one of the most important elements of the new arrangement is that debtors are given the opportunity to choose whether to include debts that are in a payment suspension status, like debts that have been temporarily “frozen” due to legal or other procedures.
Debtors must have submitted all income tax returns for the last five years, have no final conviction for tax evasion or smuggling, and have legally settled any other overdue debts not included in the arrangement.
A minimum €30 monthly payment and a fixed interest rate of 5.84% are provided, which replaces surcharges and late payment interest, giving predictability and sustainability to the arrangement.
