By the morning of 16 June, nearly 65,700 natural and legal persons had failed to pay a total of €5.5 million in tax. “These numbers are dropping rapidly, as the majority of taxpayers wish to avoid the consequences of tax arrears. We ask those who were unable to make the first instalment payment by the deadline to pay the tax in the near future or apply for a deferral,” said Kerli Onno, Head of the ETCB's Revenue Department.
By deferring the tax liability, it can be paid in instalments. The easiest way to apply for payment in instalments is to submit an application and payment schedule in the e-services environment of the ETCB. The application for payment in instalments can be submitted for 2 to 24 months.
The ETCB will start sending orders for payment of tax arrears to people and businesses that have not paid their tax liabilities or applied for payment in instalments immediately after the due date. Orders can be accessed in the e-services environment e-MTA. If the tax liability is not paid or deferred within the term specified in the order, then, by law, the ETCB must begin with recovery. Typically, the ETCB allows ten days for this, after which it begins compulsory enforcement. The usual first step in compulsory enforcement is the seizure of bank accounts.
“However, we do not wish to go that far in collecting any tax arrears. We are happy to advise every taxpayer and try to find solutions together on how to fulfil tax obligations and, if necessary, defer them,” stated Kerli Onno, Head of the ETCB's Revenue Department.
The ETCB notes that interest at a rate of 0.06% per day, or 21.9% per year, is charged on unpaid tax liabilities. However, when tax arrears are paid in instalments, it is possible to apply for reduction of the interest rate by up to 50% as of confirmation of the decision of payment of tax arrears in instalments. Such a request must be indicated in the application for payment in instalments.
More information on payment of tax arrears in instalments for private clients and business clients is available on the website of the ETCB. You can also find instructions and answers to frequently asked questions on applying for payment of tax arrears in instalments by signing in to e-MTA and selecting “Payment of tax liabilities in instalments” in the Help Center section.
