By Chrysostomos Tsoufis

Tax clearance. Two words that just hearing them cause rapid perspiration and palpitation in the unfortunate taxpayer – who, due to debts – has to repeatedly visit the tax office and stand in line for hours in order to be able to transfer a property or collect money from the State.

As of today, however, these are a thing of the past. The Deputy Minister of Finance Haris Theocharis and the Commander of AADE Giorgos Pitsilis present at 11.30 a digital application through which the tax awareness certificate will be issued completely electronically. Appointments with the tax authorities are replaced by just a few clicks for the application on the new platform with the only condition being the withholding of some amount in favor of paying off the debts. A notification may also be issued in the case that the taxpayer has settled his debts or has debts that are not due or suspended, but the duration cannot exceed one month.

According to what we know, the Theoharis-Pitsilis intervention changes the type and speed of the procedure and not the withholding rates for that reason and no changes will be made to the current legislative framework.

Transfer of real estate or establishment of a real right

If there are settled debts or not overdue or suspended, then the notification is issued with a 70% deduction on the price, as long as the price does not fall short of the objective value, and up to the amount of overdue settled debts to the Tax Administration.
If there are overdue suspended debts of more than €50,000, the withholding rate is placed at 50% of the price, as long as this does not fall short of the objective value, and up to the amount of the total suspended debts.
If the price is less than the objective value, and the amount of withholding, calculated on the price is less than the debts, a certificate of awareness is issued with the amount of the withholding calculated on the objective value of the property and on the condition that the amount of the withholding that it follows from the calculation that it does not exceed the price.

Collecting money

Deduction of 10% on the collected amount if an amount greater than 70% of the settled debt has been paid through the settlement.
Withholding of 30% if more than 50% of the settled debt has been repaid.
Withholding of 50% if an amount between 30% and 50% of the settled debt has been repaid
Withholding of 70% if an amount less than 30% of the settled debt has been repaid.
Note here that the withholding rate must correspond to at least 2 installments of the observed arrangement if there are up to 12 installments remaining or 4 installments if the remaining installments of the arrangement exceed 12.

Periodic collection of money

Withholding of 10% on the collected amount if the amount of the outstanding settled debt does not exceed €20,000. If it exceeds €20,000, the withheld amount must correspond to one installment and at the same time be at least 10% but not exceed 30% of the collected amount.