Greater support for paying tax liabilities

• During the last few years, the Tax Agency has received more than 25,000 annual applications of debt deferment situated between the previous limit for the exemption of guarantees, 18,000 euros, and the new limit of 30,000 euros
• The total number of deferments granted from 2011 stand at more than 30.8 billion euros, and of this amount almost 70% has benefited SMEs and self-employed workers
• Together with the exemption of providing guarantees, taxpayers will have a late payment interest rate at a new minimum of 3.75% for 2016

 

October 19, 2015.- Taxpayers who submit applications for deferral or split payment of tax debts up to 30,000 euros will be exempt from providing guarantees for their granting, according to a ministerial order that will be published shortly in the Official State Gazette, which regulates the new limit for the exemption, currently set at 18,000 euros.

Thus, a greater number of taxpayers will be able to fulfil their tax obligations more easily. In recent years the Tax Agency has received, on average, more than 25,000 annual debt deferment or fractionation applications situated between 18,000 and 30,000 euros. Between 2011 and 2014, the amount of deferment applications that are now exempt from providing guarantees in order to be granted totalled more than 2.5 billion euros.

This improvement in debt payment facilities will affect all the deferment and fractionation applications that are presented to the Tax Agency, except for the debts generated for the failure to deposit Personal Income Tax withholdings, that still cannot be postponed, except for the confluence of the exceptional causes taxed by law, and for debts for which the Community Customs Code establishes an independent regulation.

Reduction of indirect costs

The exemption of guarantees in deferments and fractionation applications implies a clear reduction of indirect charges for the taxpayer, given that the deferment application can be processed simpler and more quickly, and the applicant does not have to assume the costs derived from applying for warranties, mortgages or other guarantees.

With this extension to the guarantee exemption perimeter the conditions are improved for the granting of deferments that is already provided by the historically low financing that is available for tax debts. For 2016, the interest rate of late payment, which is in force for tax debt deferment and fractionation, will lower the 4.375% in force in 2015 to a new minimum of 3.75%.

In the last four years, the Tax Agency has granted deferments for an amount over 30.8 billion euros, and of that total almost 70% has constituted easier tax debt payment for the group of SMEs and self-employed workers.