The Independent Public Revenue Authority made a decision according to which amendments are made to the process of issuing a clearance certificate and a certificate of public debts: rules are introduced that establish the percentage of deduction.

The ultimate goal of the innovation is to correct chronic conditions. Thus, consistent taxpayers assist in collection of established debts. As a consequence, the possibility of setting a retention rate from 10 to 100% is abolished, and interest rates are scaled in accordance with the rate at which the debts are paid.

More specifically, retention rates for the levied amount start at 10%, when 70% of the regulated debt was repaid, 30% – when more than 50% of the regulated debt was paid, 50% – with 30% of the regulated debt paid, and reaches 70% less than or equal to 30%. The above rates may be increased in certain conditions to 20 percentage points, provided sufficient justification is provided.

Repayment percentage Coefficient of deduction
> 70% 10%
> 50% 30%
> 30% 50%
≤ 30% 70%
Repayment percentage Coefficient of deduction
> 70% 10%
> 50% 30%
> 30% 50%
≤ 30% 70%

 

In addition, the number of payments is reduced, and the retention is 10%, whereas for a debt exceeding 5,000 euros, the minimum amount of withholding is equal to one payment, for a debt of more than 20,000 euros, the minimum amount of retention is equal to two payments.

When issuing a certificate of public debts for the purpose of selling real estate, in cases where the market value is lower than the fair market value, the guarantee of payment is between the difference in market and fair market values, in order to simplify transactions for persons in a difficult economic situation whose debts are higher than the value of property.

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