The Greek government’s draft tax bill presented in Greek Parliament on Friday envisages more favourable provisions for taxpayers.
The draft legislation will be debated and voted under fast-track procedures to allow for lowered monthly installments (20 euros), lower interest rates (3 per cent from 5 per cent) and a bonus for advance payments.
Businesses will be eligible for a 120-instalment debt settlement scheme and there will be stronger incentives of reducing interest and penalty charges for those that opt for lower installment schemes of up to 36 months.
The single property tax (ENFIA) will be reduced by 22 per cent, and will offer taxpayers the last chance to settle their debt with favourable conditions.
There will be cuts in ENFIA based on the total value of real estate assets. There will be 30 per cent cuts for property up to 60,000 euros, 27 per cent for property up to 70,000 euros, 25 per cent for property up to 80,000 euros, 20 per cent from property up to a million euros and 10 per cent for property valued at more than a million euros.
Taxpayers’ arrears will be eligible for inclusion in a 120-instalment scheme for debts up to 31 December, 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 instalments, the percentage corresponds to surcharges and interest saved:
– 100 per cent if the full amount of the debt is paid off in one single transaction
– 95 per cent for 2-4 monthly instalments
– 85 per cent for 5-12 monthly instalments
– 80 per cent for 13-24 monthly instalments
– 75 per cent for 25-36 monthly instalments
– 45 per cent for 37-48 monthly instalments
– 30 per cent for 49-60 monthly instalments
– 20 per cent for 61-72 monthly instalments
– 10 per cent for 97-120 monthly instalments
Finally, the minimum amount of a monthly instalment is set to 20 euros and suspension of enforcement of claims on debtors’ properties is also included in the new taxation bill.