Amendment for Debt Settlement Tabled in Greek Parliament

An amendment on the settlement of arrears towards tax registry offices and social security funds was tabled in Greek Parliament today.

The amendment was attached to an Administrative Reform Ministry bill that has been under discussion at the Parliament since yesterday. The vote on the bill’s articles and its amendments is expected to be completed on Friday. The bill included a reduction in Greece’s VAT rate for restaurants and solidarity contribution of individuals.

The amendment regarding arrears introduces two debt settlement schemes: one offering 100 installments for debts of 15,000 euros or less and one with 72 installments for debts over 15,000 euros, as well as substantial interest rate reductions.

• The legislation provides for relief from surcharges, which depends on the number of installments:
-100% for a lump sum payment
-90% if the debt is paid in 12 installments
-80% if the debt is paid in 24 installments
-70% if the debt is paid in 36 installments
-60% if the debt is paid in 48 installments
-50% if the debt is paid in 60 installments
-30% if the debt is paid in 72 installments
-20% if the debt is paid in 100 installments

Legal regulation in 100 installments will only apply to those who have debts up to € 15,000. The minimum amount of the monthly adjustment payment cannot be less than 50 euros.

• Those who wish to remain in the settlement, will be given an additional 20% discount on the price increases due to interest and penalties, which will apply retroactively from the date of their accession to the settlement.

• After obtaining the settlement, fines for the Tax Procedures Code and the Code of Public Revenue Collection will not be calculated. Of course, surcharges will be calculated at the rate of 4.56%.