“Second chance” for settling tax debts for affected debtors and non-debtors
The Ministry of Finance gives a second possibility to settle their debts with the tax administration in several monthly installments to households and companies, without criteria for entrepreneurs, self-employed persons and companies affected by the pandemic, but with criteria of income and assets for other debtors.
The “second chance” concerns debtors who had been subject until November 1, 2019 to the old fixed arrangement of 12 monthly payments in another more favorable arrangement (for example 100 or 120 monthly payments) and after this date have lost the arrangement. as unpaid, as required by law, two or more consecutive installments, or because they left other more recent debts unpaid or unregulated.
These debtors are now offered by the Ministry of Finance a “second chance” to settle their arrears in order to include them in the new regulation at a fixed rate of 12 or 24 monthly payments which entered into force in February 2020.
The possibility is provided for by decision number A1127 / 2021 of the Deputy Minister of Finance Apostolos Vesyropoulos, which activates the provisions of article 292 of law 4738/2020. This decision defines specific criteria of income and assets to be included in the package of 12 to 24 monthly payments, with the exception of those affected by the pandemic (individuals and companies for which no criteria apply).
The ministerial decree specifies the following:
Criteria for inclusion in the permanent regulations of subpar. A2 of par. A of article 1 of law 4152/2013 according to the provisions of article 292 “Provision of a second opportunity for lost tax settlements” of law 4738/2020
Debts confirmed to public financial services, control centers and customs in accordance with the Code for the collection of public revenue (nd 356/1974, KEDE), the Code of fiscal procedure (n. 4174/2013, KFD) and the Code of customs which had been the subject of a legislative regulation of partial payment, which on 1.11.2019 was in force and was lost after that date, may be subject to the permanent regulation of the paragraph. A2 of par. A of Article 1 of Law 4152/2013 (A ‘107), as amended and in force, at the request of the debtor, provided that the following criteria are cumulatively fulfilled:
A. Income test (loss of income)
For debtors who are natural persons, legal persons or legal persons:
a. The total gross income for the previous tax year from the date of the application for registration with the current regulations, for which the deadline for filing the corresponding income tax return has passed, is at least less than 10% of the average total gross income of the last three tax years or the last two tax years (when there is only a two-year submission obligation) or the last tax year (when there is only one submission obligation for one year) from the date of the first request for registration of debts in the regulations in force, until the deadline for filing the corresponding income tax return has passed. The gross income for this criterion is derived from the relevant tax returns for each year.
b. In particular, for those liable to VAT, obliged to submit a declaration, if the income criterion referred to above is not met, the total turnover, as indicated in code 312 of the VAT declaration, for the two (2) of the last quarters of which the deadline for filing a declaration has passed to the date of filing the request for registration of debts in the regulations in force is less than at least 10% of the total VAT turnover for the two respective quarters of the previous year.
The total turnover, as indicated in code 312 of the VAT return, for the last six (6) months, for which the deadline for filing a return has passed on the filing date of the request for registration of receivables in the regulations in force is less than 10% of the total turnover for the corresponding six months of the previous year for holders of bibliographic books.
For debtors who are non-traders:
The total net income for the previous tax year from the date of the application for registration in the regulations in force, for which the deadline for filing the corresponding income tax return has passed, is less (a) if the annual net income from the previous tax year is less than or equal to 20,000 EUR, at least 10% of the average net income of the last three tax years or of the last two tax years (when no ” there is an obligation to submit only for two years) or the last tax year (when there is an obligation (for one year only) from the date of the initial request for inclusion of debts in the fixed regime hereof, (b) in the event that the annual net income of the previous tax year is greater than 20,000 euros, at least 20% of his average net income of the last three tax years or of the last two years tax (when there is no obligation to declare that e for two years) or of the last tax year (when there is an obligation to report for one year only) from the date of the first request n for the registration of debts in the lump sum payment hereof.
B. Ownership criterion
For debtors, non-commercial individuals, traders, natural persons, legal persons or legal persons, the value of the debtor’s real estate, as determined for the calculation of the additional EN.F.IA. and which results from the last document issued determining the tax for the fiscal year concerned and, if it has not been issued, from the immediately preceding one, does not exceed two hundred and eighty thousand (280,000 ) euros and the applicant’s means of transport, acquired over the past three years for private use, with a total value not exceeding eighty thousand (80,000) euros.
C. Compliance criteria
For debtors, natural persons who are not traders, traders natural persons, legal persons or legal persons, the debtor, whose debts were included in a legal regulation, which was in force on 1.11.2019 and was subsequently lost, is subject to the regulations hereof if it has not lost another partial payment legislative regulation within the last 2 (two) calendar years before 1.11.2019.
1. The above criteria to offer a second chance to tax and customs regimes lost in the following cases do not apply exceptionally and during the period of urgent measures to deal with the negative consequences of the appearance of the COVID coronavirus 19 and the need to limit its distribution:
(a) for debtors who are natural persons, legal persons or legal persons not required to file a VAT return who have a gross income that is at least 5% lower during the tax year 2020 compared to the financial year tax 2019 or for taxpayers whose VAT return is shorter VAT transactions (Code 312) by at least 5% during tax year 2020 compared to tax year 2019,
(b) for debtors who are natural persons whose employment contract has been suspended for any period of time during the year 2020 or 2021, due to the measures taken to deal with the COVID-19 pandemic, in accordance with the article thirteen of its law of 14.3.2020 Legislative content (A ’64), as ratified by article 3 of law 4682/2020 (A ’76), article 11 of the law on legislative content of 20.3.2020 (A ’68), as ratified by article 1 of law 4683/2020 (A’83) and article 68 of law 4756/2020 (A’235),
(c) for debtors who are natural persons who have not joined the âCOOPERATIONâ aid scheme regardless of the period during the year 2020 or 2021, in accordance with article 31 of law 4690/2020 and in article 123 of law 4714/2020,
(d) for debtors who are natural persons who own real estate, who have received a reduced rent in 2020 or 2021 and who have been reimbursed after verification of the âCOVIDâ declarations, in accordance with its article 2 of 20.3.2020 of the law on the legislative content, as ratified by article 1 of law 4683/2020, as added to para. 2 of article 33 of law 4753/2020 (A ‘227) and the provisions of para. 2 of article 13 of law 4690/2020 (A’104), as they apply after their amendment with the provisions of article 54 of law 4758/2020 (A’242).
2. Debtors who have acquired immovable property for a considerable cause within the twelve months preceding the application for inclusion in this Arrangement hereof, if the price exceeds 40% of the total balance payable of the lost arrangement, are not subject to the regulation of the present. Debtors who apply for registration in this regime must indicate on their request either that they have not acquired real estate for a considerable reason in the twelve months preceding the application for registration, or the price in the event of acquisition. of real estate.
Presentation of the application
The request for registration in the permanent regulation of Law 4152/2013 according to the provisions of the second opportunity of para. 7 of Article 43 of Law 4646/2019 is submitted electronically via an Internet application for all cases where this is technically supported. Exceptionally and in the absence of internet support, the request is submitted to the Tax Department. or Control Center or Customs or other Service of the Independent Authority of Public Revenue (AADE), whose Head is responsible for seeking the recovery of the debt. The claim for payment is a declaration responsible for Article 8 of Law 1599/1986.
Other elements of the arrangement
a. In the event of loss of the permanent regulation of Law 4152/2013, according to the provisions of the second opportunity of para. 7 of article 43 of law 4646/2019, para. c of case 1 of subp. A2 of par. A of article 1 of law 4152/2013.
b. Otherwise, the provisions of para. A2 of par. A of article 1 of law 4152/2013, as it is in force.