B Law & Tax
20 April 2023

Tax advisor: Increasing tax debt payment facilities

In the current context of inflation and rising interest rates, many companies and individuals are struggling with their payment obligations. For this reason, the Tax Agency has increased the payment facilities for tax debts, making deferrals more flexible and thus facilitating taxpayers’ liquidity.

The guarantee exemption limit for the deferral of tax debts has been increased to 50,000 euros.

Two instructions have been issued together with Order HFP/311/2023. The first one, the 1/2023, was issued by the Director of the Collection Department of the State Tax Administration Agency and deals with the guarantees required to obtain the suspension of administrative acts subject to appeal and claim, as well as for the granting of deferrals and payment in installments. The second instruction, 2/2023, issued by the same person, deals with the management of payment deferrals and installments.

Both instructions came into force on April 15 of this year. Some of the measures adopted are worth mentioning:

– The terms for granting deferrals are raised from 12 to 24 months for individuals, and from 6 to 12 months for legal entities.

– Deferrals for a value of up to 50,000 euros may be processed and approved automatically in a matter of seconds, provided that the request is submitted during the voluntary or executive payment period. However, if the application is submitted during the enforcement period, the existing encumbrances on the debtor’s assets and rights at that time will remain in force.

– If a surety insurance or bank guarantee is provided, the maximum terms become 60 months (previously 36 months), but if the guarantee provided is an unencumbered urban real estate, it is increased from 24 to 36 months.

– The time limit is extended for exceptional cases in which the maximum terms may be exceeded from 48 to 60 months. However, prior authorization is required in order to do so.

– If the previous charges of an urban property are discounted, and still its amount exceeds 115% of the debt, it is accepted as a guarantee.

How is the value of the debt that is eligible for deferral calculated?

At the time of requesting a debt deferral or deferral, all debts included in the request and any other outstanding debts of the same debtor for which a deferral or deferral has been requested but not resolved will be added together.

The debts that can be accumulated will be those that are registered in the databases of the corresponding collection bodies, without the need to consult other bodies or entities included in the scope of application of Order HFP/311/2023 to determine them.

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