The deadline for voluntary tax payment has passed, and taxes can now be paid in installments before advancing to a tax enforcement process, the Tax Authority (AT) clarifies in an informational brochure on the subject.
Which debts are eligible for installment payment?
According to the AT, the following debts are eligible:
- Individual income tax (IRS);
- Corporate income tax (IRC);
- Value-added tax (VAT) – when the settlement is officially conducted by services;
- Municipal tax on property conveyance (IMT) – when the settlement is officially conducted by services;
- Single circulation tax (IUC).
How do installments work?
The tax authority explains that the plans are characterized by:
- Offering up to 36 installments, with a minimum monthly amount of 25.50 euros;
- The value for calculating installments does not include late payment interest.
“The request must be submitted up to 15 days after the payment deadline of the tax bill through the Finance Portal, under Citizens or Companies > Services > Installment Plans > Simulate/Register Request. You must specify the number of installments at the time of the request,” states the document.
If no request is made, is there an automatic plan?
In a social media post, the AT explains that “an installment plan is automatically created” when:
- A tax is not paid within the legal deadline; and
- The debtor does not submit an installment payment request within 15 days after the payment deadline of the tax bill.
However, the debt “must be in the voluntary collection phase” and the “amount must be equal to or less than €5,000 (individual taxpayers), or €10,000 (corporate taxpayers).”
The tax authority advises that “if the debt is not settled via the automatic payment plan, you can choose not to pay the first installment,” and in this case, “a debt certificate will be issued and the appropriate tax enforcement process will begin.”
How does installment payment work?
The first installment payment is made “by the end of the month following the plan’s authorization, and the subsequent installments by the end of the corresponding month” the AT clarifies.
It is noteworthy that “the amount of each installment includes late payment interest calculated on the respective amount from the end of the voluntary payment deadline to the month of the corresponding payment.”
“The payment document for each installment should be obtained by the taxpayer from the 11th day of each month via the Finance Portal, after logging in under Installment Plans > Issue Second Copy of Installments,” it reads.
And if you do not comply?
According to the tax authority, “failure to pay any installment results in the immediate maturity
of the following ones and the issuance of a debt certificate for the outstanding amount, except if the payment occurs before its issuance.”
“You can check outstanding payments on the Finance Portal, after logging in under Payments > Outstanding Payments,” the AT explains.
