An amendment to the ministry of development’s draft bill includes a provision to “freeze” interest rates on overdue debt arrears for individuals and businesses to the tax administration for one year. This measure aims to shield taxpayers from excessive burdens due to increased interest rates after the previous framework expired in late March.
Specifically, the interest rate on installments for confirmed debts to the Independent Authority for Public Revenue (AADE) will remain stable until March 31, 2025, at the level set up until March 31, 2024.
This measure will also have a retroactive effect from April 1, 2024, covering installments set out in the previous month as well as those already in effect.
The interest rate for installments of arrears under arrangement is set at 4.34% for debts arranged in 12 monthly installments and 5.84% for debts arranged in more than 12 installments.
For debts restructured after the loss of the initial arrangement (second inclusion), the interest rate is set at 5.84% for debts arranged in up to 12 monthly installments and 7.34% for debts arranged in more than 12 monthly installments.
