Rewarding debtors who pay

The tax administration intends to reward debtors who are consistent with the payment of dues to the state, and to establish new criteria and simpler procedures for granting evidence of tax awareness and debt certificates. Presenting the action plan of the Independent Authority for Public Revenue (AADE) for this year, its head Giorgos Pitsilis said debtors will be treated based on their profile.

That means those who are included in arrear payment plans and pay their installments regularly will have more privileges, such as for example the reduction of the withholding rate when selling a property, which currently amounts to 70% of the price value.

In order to have the percentage reduced, they must meet a number of conditions, such as no skipping of tranches, no “jumping in and out” of plans etc. Depending on the amount owed, it is possible for a debtor to reduce the withholding rate to 50% or even lower, depending on whether it is a transfer of real estate or an amount of money.

Pitsilis noted that in the case of real estate transfers, taxpayers with arranged debts who are consistent in paying their monthly installments will be immediately rewarded with reduced withholding rates on the sale prices of their properties compared to those who have not settled their debts or are inconsistent in their arrangements when issuing debt certificates. AADE will be informed immediately and the certificates will be issued digitally.

Today, in order for the tax office to issue the tax information, the debtor must first have joined a debt settlement program or have debts that are not due or suspended. In these cases, a certificate of compliance can be issued with a limited validity, which cannot exceed one month. After the debtor’s compliance (in a payment plan), the tax administration will set a mandatory withholding limit in cases where the proof of awareness is issued for the collection of money or the transfer of property.

The withheld amount is taken into account to cover the installment or installments, according to the debt settlement plan.