Favorable provisions from property tax (ENFIA) reductions & upgraded 120-installments repayment plan
The government's new draft tax bill, tabled in parliament on Friday, envisages more favorable provisions to taxpayers, private and corporate, to settle their debts with tax agencies.
Under the draft legislation, which will be debated and voted in Parliament under fast-track procedures, taxpayers will be offered lower monthly installments (20 euros), lower interest rates (from 5.0 pct to 3.0 pct) and a bonus for higher advance payments.
Businesses will be eligible to enter a 120-instalments debt settlement scheme with a strong incentive of reducing interest and penalty charges between 75-95 pct if they opt for lower installment schemes (up to 36 months).
The draft legislation also envisages reductions in a special property tax (ENFIA) by an average weighted 22 pct, offering a respite to real estate owners in the middle class and low-value owners. The ministry said that this scheme will be a last chance for taxpayers to settle their debt with favorable conditions and that after completion of the scheme, all debts will be settled through a permanent debt settlement mechanism.
Cuts in ENFIA, based on the total value of real estate assets, will be: 30 pct for property up to 60,000 euros, 27 pct for property up to 70,000 euros, 25 pct for property up to 80,000 euros, 20 pct for property up to 1,000,000 and 10 pct for property more than 1,000,000 euros.
Taxpayers’ arrears will be eligible for inclusion in a 120-instalment scheme for debts up to December 31, 2018.
Furthermore, both private and corporate tax debtors, the latter owing up to 1 million euros, can save on surplus charges depending on any of the following number of installments, the percentage corresponds to surcharges and interest saved:
- 100% if the full amount of the debt is paid off in one single transaction
- 95% for 2-4 monthly installments
- 85% for 5-12 monthly installments
- 80% for 13-24 monthly installments
- 75% for 25-36 monthly installments
- 45% for 37-48 monthly installments
- 30% for 49-60 monthly installments
- 20% for 61-72 monthly installments
- 10% for 97-120 monthly installments
Finally, the minimum amount of a monthly installment is set to 20 euros.
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