Bill for debt settlement about the energy crisis was filed yesterday in parliamentwith a number of additional provisions, among which is the imposition of fines of up to 50,000 euros for businesses that will not interconnect their POS terminals with systems AADE. It also provides for the simplification of real estate transactions, automatic filling of E9, monthly payment of transportation fees and the abolition of penalties for late filing of tax returns.

Interest payments

Reattach to 72 or 120 dose settings for tax debt and in social security funds and 100 doses for debts to municipalities, as well as new mechanisms for extraordinary installment payments 36 or 72 for debts to the tax office, insurance funds and municipalities are the core of the bill. The installments are interest-bearing, with an interest rate of 4.37% for 36 installments and 5.87% for 72 installments, and the minimum monthly payment is 30 euros.

In particular, the following is provided:

• Borrowers who lost their 72 or 120 installment contracts before February 1, 2023 can rejoin them. The condition is payment in two installments within three working days from the date of application and no later than July 31, 2023.

• The regulation of 100 municipal debt contributions is being revived. In particular, debtors who lost this agreement before February 1, 2023 can join it again by paying two installments by July 31, 2023.

• A new extraordinary procedure has been established for paying off debts to the tax office in the amount of 36 or 72 payments overdue after November 1, 2021 and before February 1, 2023. The procedure applies to debtors who were in existence before the energy crisis. .

• A new regulation is being introduced for 36 or 72 payments on debts to municipalities that are overdue after February 1, 2021 and before February 1, 2023. Moreover, this regulation applies to debtors who were wealthy before the start of the energy crisis, i.e. did not have any municipalities in arrears for maintenance prior to November 1, 2021, and since they were subject to the 100 payment rule, they served it until they were subject to the new rule.

Other provisions of the bill define, among other things:

• There is a 3% discount for a one-time payment of income tax.

• Mandatory interconnection of EFT/POS terminals with AADE and data transmission either through tax electronic mechanisms or directly with AADE information systems. In case of violation of the relevant obligation, a fine of 1,000 to 50,000 euros is imposed.

Fines of up to €50,000 for businesses that do not continue to connect their POS terminals to AADE.

• From April 3, 2023, a monthly toll payment mechanism is in place as an incentive to remove the immobility of cars and motorcycles. Owners can temporarily remove immobility at any time.

• Until December 31, 2023, the reduced VAT rate of 13% on transport, catering services, gyms and the super-reduced rate of 6% on personal hygiene items (masks, etc.) and cinema tickets have been extended. The budgetary cost for 2023 is 246 million euros.

• Incentives for choosing e-invoicing have been extended to 2023.

• No penalty is imposed for the late declaration of income tax by a legal or natural person, if the total amount of tax does not exceed 100 euros.

• There is no penalty of 100 euros in case of late declaration of short-term residence, if the income was declared in the tax return.

Real estate

• Installed automatic update of E9 when a notary places a contract in the myPROPERTY application.

• The obligation to update E9 is established in the event of a transfer of property, prior to filing a transfer or gift or parental benefit or inheritance tax return.

• Clarified the conditions for providing a certificate of awareness in the event of a transfer of property if the taxpayer has joined the debt settlement program or has an overdue or suspended debt.

• When transferring immovable property, the Article 105 certificate of non-payment of inheritance, parental benefit and gift tax is canceled if the property transferred was received by inheritance, parental benefit or gift.

• E-invoicing exemptions have been extended for the 2023 tax year.

• In the event of changes to the ENFIA declaration where the tax is reduced by more than 300 euros, the statutory audit is cancelled.