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Option of settlement of debt to the State

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Option of settlement of debt to the State

Various provisions are established from time to time, which enable debtors to settle overdue debts to the State by repaying their debts in instalments, and be relieved from any surcharges due to overdue payment.

The main law which sets out such facilities and is currently applied by tax offices is Law 2648/1998 (Articles 13 to 21 on repayment of overdue debts to the State in installments).

Pursuant to the said provisions, debtors of overdue amounts payable to the State may be granted the option of repaying their debts in instalments past the statutory deadlines, provided that direct payment of the entire amount thereof is financially impossible.

The competent body to grant such option in relation to base confirmed debts of up to 300,000.00 EUR is the Head of the competent Tax Office. Debts which exceed this amount shall be referred to an ad hoc Committee and to the Minister for Finance.

The number of monthly instalments granted to the debtor shall be derived from the sum of special weighting coefficient, on condition that each monthly instalment shall not be less than one hundred Euros (€100.00).  Such coefficients shall be: a) financial difficulty, b) secured debt, c) origin of debt, d) debtor’s behaviour, and e) reason for which the facility is requested.

Consideration of the requirements to grant the option of repayment in installments is subject to: a) submission of an application on behalf of the debtor, b) payment of a fee payable to the State equal to five (5) per thousand of the base debt for which the facility is requested, which may not exceed one thousand (1,000) EUR.

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