Unchanged will remain for two more years interest rates applied to payments of overdue debt to Tax officeas the Ministry of Finance decided to extend the current regime by August 2027.
By the decision of Minister Kyriakos Pierrakakis, the percentages provided by Article 53 of the Tax Procedure Code because the debt to the tax office remain “frozen”, without incorporating the increase in the European Central Bank’s main refinancing rate (2%). On the contrary, the level that was set on January 1, 2014, ie 0.25%, is still valid.
In practice, this means that debts that are not paid in time will be burdened with an interest of 8.76% per year, a percentage of 0.73% per month. The same arrangement applies to cases of refunds of disqualified taxes, where the interest rate is kept at 6% per year or 0.50% per month.
According to the law, any tax amount is not paid within the prescribed deadline is charged with interest from the very next day of its expiration.
With the extension, the costs for taxpayers who delay their liabilities remain at the same level, preventing the automatic increase in the rise in the ECB’s interest rates.