Reliable taxpayers to be rewarded
Bank account seizure limits to increase in 2023 for those who meet their obligations on time
Seeking to reward consistent taxpayers, the government’s financial staff are planning the gradual introduction of accounts that will be exempt from seizures by the authorities in 2023, while at the same time improving conditions for granting tax clearance certificates to those with settled arrears.
Apart from supporting those who pay their obligations on time, the aim of the Ministry of Finance and the Independent Authority for Public Revenue (AADE) is to also secure faster tax refunds for those with no arrears.
Tellingly, according to a tax administration official, this year has seen a record number of both applications and amounts claimed for tax refunds.
In fact, tax refunds have far exceeded the budgeted target.
The gradual introduction of accounts exempt from confiscation will proceed after various issues with credit institutions are resolved, according to the tax administration’s business plan for next year.
The plan, which is to be enhanced with new legislation, provides that the unseizable limit of 1,250 euros currently in force for those with debts to the state will be increased by specific rates depending on the number and amount of installments paid by debtors.
The limits of the bank account the tax authorities will not be able to exceed when conducting seizures will be increased if debtors settle their debts and have paid two installments, if they have declared the account for which they are requesting an exemption from seizure, and if they pay their monthly installments on time.
The calculation basis for the adjustment of the limit will be the sum of the monthly installments multiplied by three.
For example, if the monthly installment amounts to 500 euros, with the start of the new procedure the debtor will gain an unencumbered limit of €1,500 (€500×3) from €1,250, which applies to all. Over time and provided the arrangement is upheld, the rate will increase.
Depending on the number of installments, the increase in the multiplier will vary.
The new measure also foresees that as the time for full repayment of the debt approaches, the limit (i.e the exempt from seizure threshold), will reach the maximum, with the maximum multiplier of 4.5 being applied.
The limits of the amount will be set each month and will be valid for one month.
