All these debts can be settled either individually or jointly by the liable taxpayers with the “permanent settlement” of Law 4152/2013. In any case the monthly installments of the “fixed arrangement” will not be interest-free but will be charged with interest calculated at annual rates of 4.34% if up to 12 monthly installments are chosen and 5.84% if 13 to 24 monthly installments are chosen.
The inclusion in the “permanent arrangement” of Law 4152/2013 can be done either only for the overdue unpaid balance of the debts or for the entire outstanding amount of the debts, whether they are overdue or not or partially overdue and partially not overdue.
Application submission
The application for inclusion in the regulation must be completed and submitted electronically together with a relevant responsible declaration. The electronic submission of the application and the required declaration is made through a special application of the TACHISnet system, which is available on the website of the Independent Public Revenue Authority (AADE), at the online address www.aade.gr.
From this website, the taxpayer must select in order “Citizens”, “Debt settlement application” and “Log in to the application”.
He must then type the TAXISnet username and password in order to enter the main menu of the application for the electronic submission of debt settlement requests to the Tax Office.
From the main menu of the application, the taxpayer must select “Continue” next to the indication “P7 Application for permanent settlement of debts n. 4152/2013, as amended by n. 4646/2019” and then “Submit a new” application.
Next, he must choose “set up to 24 installments”, so all his debts will appear on his computer screen, which can be set up in up to 24 monthly installments.
From the debts that appear, he can choose to make a separate arrangement for each one or a single arrangement for all of them.
Amount determination
Then, on each settlement application, he should list his net monthly income and monthly expenses. The difference between the two amounts will determine the amount of each monthly installment that he will be required to pay by settling his debt and, consequently, will also determine the number of monthly installments, which can reach up to 24. The more the smaller the difference between monthly income and monthly expenses, the greater the number of monthly installments the system will approve. By then selecting “next page”, the form for submitting the application-responsible declaration will appear on his computer screen with his personal identification details pre-filled in which he will have to fill in information that reflects his real income and property situation. In this context, he will be able to choose to extract these data from the already submitted personal income tax returns and the already submitted E9 returns. If he has income or properties that are not included in the relevant declarations, he must declare them additionally. He must also responsibly declare that there is no charge pending against him for a criminal tax evasion offence. The taxpayer must also declare the IBAN of at least one of his bank accounts through which he will make the payments of the monthly installments of the arrangement.
The… fine print
The 8 secrets and pitfalls we should know
1 The total amount of the debt subject to the regulation is charged with an annual interest rate of 4.34%, if the repayment is determined in up to 12 monthly installments and with an annual interest rate of 5.84% if the number of monthly installments is determined from 13 to 24.
2 The amount of each monthly installment cannot be less than 30 euros. Therefore, in the event that the amount owed concerns only ENFIA and is less than or equal to 330 euros or slightly higher than 330 euros, it is not beneficial to be included in the “fixed settlement”, since in this case the amount will not be able to be settled in more than 11 monthly installments already provided by the current legislation for each ENFIA debt while at the same time the installments will bear interest. If the amount owed concerns only income tax and is less than or equal to 240 euros or slightly higher than 240 euros, it is still not beneficial to be included in the “fixed settlement” because in this case the amount cannot be settled in more than 8 monthly installments installments already provided by the current legislation for each income tax debt, while at the same time the installments will bear interest.
3 In the event that, after the date of settlement, new debts are created, the debtor can also subject them to a new “permanent settlement” under the same conditions.
4 A condition for joining the “permanent arrangement” is that the debtor has submitted, either on time or late, all income tax returns for the last five years, as well as any periodic and liquidation VAT returns for which he was liable in the last five years.
5 A taxpayer against whom a criminal prosecution for tax evasion is pending cannot be subject to the “permanent regulation”.
6 The debtor will be removed from the arrangement – and will be obliged to immediately pay the entire outstanding balance of his debt, according to the certification details, with the consequence of activating the right of the State to impose seizures on his income, deposits and assets – if :
a) does not pay an installment of the arrangement on time more than once,
b) delay the payment of the last installment of the arrangement for a period longer than one month,
c) does not submit the income tax and value added tax declarations, throughout the period of the settlement of the payment of his debts and until they are paid, within three (3) months at the latest from the expiry of the deadline for their submission or, if the submission deadline has passed until April 19, 2024, within three (3) months from this date,
d) does not pay off or settle any new debts of his in a legal manner, throughout the duration of the arrangement, within three months from the end of the deadline for their payment,
e) has submitted incomplete or untrue information in order to be granted the arrangement.
7 In case of loss of settlement, the debtor is given a second chance to re-settle the outstanding balance of the debt in a number of monthly installments that cannot exceed the number of installments remaining when the original settlement was lost. However, in this case, in order to accept the request for this second chance, the debtor will have to pay as an advance two installments of the new arrangement together. In addition, in this arrangement of the second opportunity you will be charged with higher annual interest rates, which amount to 5.84% for debts that will be settled in up to 12 monthly installments and 7.34% for debts that will be settled in more than 12 monthly installments.
8 In case of late payment of a monthly installment of the “fixed arrangement”, the amount of this installment is charged with a 15% surcharge. This installment with the corresponding surcharge must be paid no later than the deadline for the payment of the next installment.
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