By Chrysostomos Tsoufis

Cutters in the digital version of the certificate of awareness decided the head of AADE Giorgos Pitsilis with a circular issued by him.

In particular, in the case of the transfer of a property or the establishment of a real right over it, no proof of awareness/certificate of debt is issued digitally if

– There are individual overdue debts of the applicant over €10,000 for natural persons and over €50,000 for legal entities. The same amounts apply to debts of other persons for which the applicant for the certificate is responsible for their payment.

– If the amount of debts exceeds 120% of the largest, during the last three years, sum of basic individual debts that have been confirmed annually against the applicant.

In cases of money collection if there are overdue unregulated debts in suspension of more than €50,000

Normally the proof of awareness must be issued digitally. Therefore, in the above cases, if it is impossible to issue a digital version, the applicant is informed of the reason for rejection through his portion on the AADE digital portal so that he can make his request again to the competent agency (such as DOU, KEBEIS, KEFOMEP) with the filing of any necessary supporting documents.

In the application for the granting of a proof of awareness, the following are indicated in accordance with the circular:

– First and last name, patronymic, Tax Registry Number, professional and residential address, ID or passport number in the case of foreigners, in the case of natural persons

– Name, address and Tax Registry Number for legal entities

– The purpose

– Tax Registry Number and the name or surname of the entity to which it will be deposited.

In cases where the proof of awareness is requested for the collection of money, then the withholding percentage on the collection is reduced according to the repayment rate of the arrangement or arrangements to which the debts have been subject:

-10% if >70% of the settled debt has been paid through the settlement
-30% if 51-70% of the debt has been paid
-50% if 31-50% of the debt has been paid
-70% for payments up to 30%

In any case, the withholding amounts must cover at least 2 installments of the observed arrangement if the remaining installments are up to 12 or cover at least 4 installments if more than 12 remain.

Exceptionally and in cases where the demand from the State is periodic, the withholding rates change to:

-10% on the claim for settled debt up to €20,000
-10-30% for debt over €20,000 (must cover the amount of at least one installment)

In the event that the proof of awareness is required for the transfer of a property or the establishment of a real right over it due to compelling reason with the condition of withholding and as long as the price of the withholding does not fall short of the objective value:

-70% on the price up to the amount of overdue settled debts. Suspended debts are not counted.
-50% on the price if the debts (suspended and regardless of whether they have been regulated) exceed €50,000

In the event that the total overdue debts are not fully paid with the amount of the withholding and the price falls short of the objective value, then the amount of the withholding is calculated on the objective value of the property and on the condition that the amount of the withholding resulting from the above calculation does not exceed the price.

If it exceeds a price, then no proof of awareness is issued.

Before the collection of any amount by the agencies of the Central Administration, a check will be carried out to see if the set-off conditions are met, and if the withholding actually applies in all cases it is mandatory 100%.

It goes without saying that the withholding amount cannot exceed the total of overdue debts.

Based on all of the above, AADE gives specific examples of withholding tax calculation:

Example 1

Data:

• The taxpayer requests on 10.11.2023 proof of awareness to collect from OTA. 10,000 euros.

• the applicant for the proof has submitted his overdue debts to a partial payment arrangement of 24 monthly installments, which he adheres to and is aware of, and has paid 17 installments of the arrangement, with 7 installments remaining from the date of the receipt application (i.e. it has been paid amount greater than 70% of the arrangement and the remaining number of installments is less than 12).

• The above certified in the D.O.Y. his open remaining overdue settled debts amount to 21,000 euros, with 3,000 euros being the amount of the installment.

• the other conditions for granting the proof of awareness are met.

• increase of coefficients according to par. 3 a) of section B.: +10%

Answer:

The total withholding percentage on the receivable collected is set at 20% (= 10% due to the repayment of 70% of the settlement + 10% due to the increase of the rates) on the receivable/collection, which should however cover at least 2 installments of the arrangement following the date of the application for the receipt, i.e. the installments of November (3,000 euros) and December (3,000 euros).

Therefore:

The withholding amount on the proof of awareness amounts to 6,000 euros.

Example 2

Data:

• Taxpayer requests on 20.11.2023 proof of awareness in order to collect periodic claims from E.O.P.Y.Y..

• The amount of the claim for which proof of awareness is requested is 20,000 euros.

• There is a periodic requirement from E.O.P.Y.Y..

• The taxpayer has remaining overdue settled debts of 18,000 euros.

• the other conditions for granting the proof of awareness are met.

Answer:

The withholding rate is 10% of the collected claim, i.e. 2,000 euros, without requiring a specific installment to be covered as the amount of the remaining settled debt is less than 20,000 euros.

Therefore:

The withholding amount on the proof of awareness amounts to 2,000 euros.