We would like to inform you that an amending law was published in the Government Gazette which extends the provisions of the Law Regulating the Settlement of Overdue Taxes (the Law), offering part relief from interest and penalties. The provisions of the amending law are effective from 29 April 2021, the date of its publication.
RECAP OF THE EXISTING TAX LAW PROVISIONS*
The Law gives the opportunity to companies and individuals that have overdue taxes, to settle them through a regulated instalment scheme (via the Ariadne Government Portal) benefitting from part relief of interest and penalties due, but not of the tax due.
Up to now, the Law allowed eligible taxpayers to enter a scheme for the settlement of overdue taxes for tax years up to 2015 as follows:
| Tax liability up to and including 2015 | Application for relief scheme |
| Assessed and payable up until 3 July 2017 | Deadline has already lapsed |
| Assessed and payable after 3 July 2017 | Within 6 months from the date the tax becomes overdue |
AMENDING LAW
The amending law provides that “eligible taxpayers” may enter the scheme for part relief of the interest and penalties due on overdue taxes relating to tax years 2016 – 2019 (both years inclusive) subject to conditions.
“Eligible taxpayers” are:
- Businesses and self-employed individuals subject to VAT, and
- Businesses and self-employed individuals who are exempt from the obligation to register for VAT (e.g. Approved Private Tutoring Schools, Music Schools and Dance Schools)
that have experienced a decrease in their annual turnover by at least 25% in 2020 compared to 2019, due to business disruption caused by COVID–19.
An application to enter the relief scheme must be submitted within 12 months from the entry into force of the amending law (i.e. up until 29 April 2022) provided that all tax returns due, are submitted before the application date and not later than 31 December 2021.
Termination of a regulated settlement scheme
In accordance with the law, a settlement scheme is terminated in cases where the taxpayer delays to pay 5 instalments.
Due to the effects of the COVID-19 outbreak, instalments that have not been paid during the 10-month period, March – December 2020, will not be taken into consideration when assessing the 5 delayed instalments.