Ministry of Finance: second opportunity for debt adjustment to the tax authorities

Starting today, July 12, the Ministry of Finance is offering a second chance for affected debtors to settle their overdue debts to the tax authorities through the standard payment plan of 24 or 48 monthly installments, without any income or asset requirements.

This applies to those who, as of November 1, 2019, were enrolled in the old fixed-term payment plan of 12 or 24 installments but were subsequently removed from the plan after that date, either because they failed to pay two or more consecutive installments or because they left other, more recent debts unpaid or unregulated.

The decision

Specifically, by decision of the Deputy Minister of Finance, Apostolos Vesyropoulos, the second opportunity for the permanent settlement «opens» today for affected debtors and on October 1, 2021, for the remaining taxpayers who missed the previous fixed-term settlement. More specifically:

1. Affected debtors: Without any income or asset requirements, taxpayers who have been affected by the pandemic, They have a second chance to comply with the tax and customs regulations they previously failed to meet. The measure applies to:

– Taxpayers, self-employed individuals, legal entities or legal entities not required to file a VAT return that had gross revenue at least 5% lower in the 2020 tax year compared to the2019 tax year, or for those required to file a VAT return with a lower VAT turnover (Code 312) by at least 5% in the 2020 tax year compared to the 2019 tax year,

– Debtors who are non-business-owning individuals whose employment contracts were suspended for any period of time during 2020 or 2021, due to measures taken to combat the COVID-19 pandemic.

– Debtors who are non-business-owning individuals and who enrolled in the «SYN-ERGASIA» relief program at any time during 2020 or 2021.

– For individual debtors who own real estate and who received reduced rent in 2020 or 2021 and have been reimbursed following an audit of their “COVID.”.

Applications for enrollment in the “Second Chance” debt settlement program may be submitted online, starting today, July 12.

2. Debtors not subject to the restrictions: Based on income and asset criteria, as well as a «tax compliance» criterion, which must be met cumulatively, debtors who had enrolled by November 1, 2019, in the standard repayment plan12- or 24-installment payment plan but subsequently lost that eligibility. The income criteria are as follows:

– The total gross income for the immediately preceding tax year as of the date of application for enrollment in the permanent arrangement provided for herein, for which the deadline for filing the relevant income tax return has passed, are at least 10% lower than the average of the total gross income for the last three tax years or the last two tax years (when there is an obligation to file for only two years) or the most recent tax year (when there is an obligation to file for only one year) from the date of the initial application to include the debts in the permanent settlement provided for herein, for which the deadline for filing the relevant income tax return has passed. The gross income used for this criterion is derived from the relevant income tax returns for each year.

– Specifically, for VAT-registered taxpayers required to file a return, provided that the income criterion set forth in point (a) above is not met, the total turnover, as reported in line 312 of the VAT return, for the two (2) most recent quarters for which the filing deadline has passed as of the date of submission of the application to include the debts under the permanent settlement provision herein is less by a percentage of at10% of the total VAT turnover for the two corresponding quarters of the previous year for those keeping simplified accounting records.

– Total revenue, as reported in line 312 of the VAT return, for the last six (6) months, for which the filing deadline has passed as of the date of submission of the application to include the debts under the permanent settlement provision herein, is at least 10% lower than the total turnover for the corresponding six months of the previous year for those who maintain double-entry accounting records.

For individuals who are not self-employed:

– If the net annual income for the previous tax year is less than or equal to 20,000 euros, by at least 10% of the average net income for the last three tax years or the last two tax years (when there is an obligation to file for only two years) or the most recent tax year (when there is an obligation to file for only one year) from the date of the initial application to include the debts in the permanent settlement provided for herein,

– If the net annual income for the previous tax year exceeds 20,000 euros, by at least 20% of the average net income for the last three tax years or the last two tax years (when there is an obligation to file for only two years) or the most recent tax year (when there is an obligation to file for only one year) from the date of the initial application to include the debts in the permanent settlement provided for herein.

Asset Criteria

For debtors who are non-business-owning individuals, business-owning individuals, legal entities, or legal entities, the value of the debtor’s real estate, as determined for the calculation of the supplementary EN.F.I.A. and which is derived from the most recent tax assessment notice issued for the relevant tax year and, if such a notice has not been issued, for the immediately preceding tax year, does not exceed 280,000 euros, and the applicant’s vehicles, acquired within the last three years for private use, have a total value not exceeding 80,000 euros.

Taxpayers in Good Standing

For debtors who are non-business individuals, business individuals, legal entities, or legal entities, a debtor whose debts were subject to a legislative arrangement that was in effect as of November 1, 2019, and subsequently lapsed, is subject to the provisions of this regulation provided they have not lost eligibility for any other legislative installment payment arrangement during the last 2 (two) calendar years prior to November 1, 2019. In other words, anyone who, in addition to the old arrangement, has lost another arrangement during the last two years is excluded from this second opportunity.

Who Is Excluded?

The following are not subject to the provisions of this decision: debtors who acquired real estate through a transaction for consideration (purchase) during the twelve-month period preceding their application for inclusion in the permanent arrangement set forth herein, provided that the purchase price exceeds 40% of the total balance due under the previously lost payment plan. Debtors applying to participate in this payment plan must state on their application either that they did not acquire real property for consideration during the twelve-month period preceding the application for inclusion, or the purchase price in the case of the acquisition of real propertyproperty.