Until 2027 without surprises: interest on tax debts "Frozen"

The Greece government leaves unchanged interest rates for overdue tax debts until 2027.

The decision of the Minister Kiryakos Pierrakakis retains the current levels of interest and prevents automatic increase in taxpayer loads due to ECB rates.

What happened: By decision of the minister Kiryakosa Pierrakakisinterest on Syazeric (expired) tax liabilities remain “frozen” until 2027 and Not indexed to the refinancing rate ECB (now 2%). The level acting with January 1, 2014 – 0.25% As a calculation base.

How much will the taxpayer pay when delay

• 8.76% per annum (≈ 0.73% per month) – a percentage of unpaid tax after the expiration of the term.
• 6% per annum (0.50% per month) – the rate on the return of excessively paid amounts.

When the interest begins to drip. The day after the set payment deadline – in accordance with Art. 53 of the Code of Tax Procedures.

What does this mean for business and citizens

• Predictability of expenses: There is no automatic increase to interest after the rates of the ECB.
• Liquidity planning: It is easier to calculate the cost of the delay and choose installments/settlement.
• Retributions of overpayments: A fixed rate of 6% per annum is preserved.

Brief FAQ

• Increasing the rate of ECB will affect my interest?
  No, until 2027, a frozen mode is used.
• From what day are interest accrued?
  From the first day of the delay – the day after the deadline.
• Is the re -payment return?
  No, a fixed rate is valid 6% per annum.

Source: Article 53 of the Code of Tax Procedure (base 0.25% of 01.01.2014 lasts until 2027).

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