Minister of Finance, Youssef Khalil, signed a decision regarding the mechanism for installment payments of taxes and fees owed by taxpayers for activities conducted in 2020 and earlier, in accordance with the provisions of Article 3 of Law No. 290/2022. The decision stated the following:
**Article One:** This decision specifies the implementation details of Article 3 of Law No. 290/2022 related to the installment of taxes and fees owed by taxpayers that are collected by the General Directorate of Finances.
**Article Two:** The following taxes, arising from self-assessment or basic and additional assessments issued by the tax administration pertaining to activities/income from 2020 and prior, can be paid in installments:
- Income tax on profits, including the tax resulting from the application of Articles 41, 42, and 45 and their amendments.
- Tax on salaries and wages, including the tax due for the fourth quarter of 2020 and the tax under Article 53 of the Income Tax Law.
- Tax on movable capital, excluding the tax under Article 51 of Law No. 397/2003 and its amendments.
- Income tax on energy sales by electricity generators (Article 70 of Law No. 144/2019).
- Value Added Tax including the tax due for the fourth quarter of 2020.
- Property tax.
- Transfer fee.
- Indirect taxes and fees managed by the tax administration, including fees that are periodically due for the fourth quarter of 2020.
- Improvement tax issued according to assessment tables.
**Article Three:** Mechanism for Installments:
The taxpayer or their representative must submit a written request for tax installment, using the form adopted by the administration, to the relevant collection department, accompanied by the following documents:
- A copy of the registration certificate with the tax administration.
- A copy of the legal power of attorney, if required.
- Documents proving ownership of movable or immovable assets and their estimated values (if any) for installment marking purposes.
- A copy of the commercial advertisement or the commercial registry for companies, if available.
The relevant collection department will examine the request concerning the amounts due, type of tax, accompanying documents, and the estimated value of movable and immovable assets to ensure payment of the installment amounts. The installment program, prepared by the relevant collection unit, will consist of equal installments, following the payment of the first installment, as follows:
- A maximum duration of three years at an interest rate equal to the treasury bond rate for the installment period, if the first installment is 50% of the tax amount.
- A maximum duration of one and a half years at an interest rate equal to the treasury bond rate for three years plus one point, if the first installment is 25% of the tax amount.
- A maximum duration of one year at an interest rate equal to the treasury bond rate for three years plus two points, if the first installment is 15% of the tax amount.
Taxpayers wishing to pay their taxes in installments can benefit from a reduction in verification and collection penalties valid on the date of the request and upon payment of the first installment.
In the case of installment payment of the transfer fee, the following must be adhered to:
- Payment of the fixed fee as a condition for the acceptance of the installment request.
- Absence of cash and financial instruments in the taxpayer's share that can be sold to cover the fee.
- An installment mark is placed on the estate components that secure at least double the value of the installment fee.
A separate installment request is required for each type of tax.
**Article Five:** All installment requests that meet the conditions and provisions specified above are considered accepted, provided that:
- The specified provisions are adhered to.
- The first installment is paid by 14/7/2022 at the latest.
**Article Six:** Taxpayers who failed to pay installments of previous installment programs before the enforcement of Law 290/2022 can reschedule their installment programs under the conditions specified above.
**Article Seven:** In case of defaulting on any installment, the full installments become due, and the taxpayer is liable for interest equivalent to the treasury bond interest for three years plus three points on the unpaid amounts.
**Article Eight:** This decision will be published in the official gazette and on the Ministry of Finance's website, and will take effect from the date of issuance until 14/7/2022.
**Extension of Deadlines:**
Khalil also signed two decisions, the first extending the deadline for submitting the annual declaration and the deadline for submitting the statement on the beneficial owner (form M 18) for the 2021 activities, which originally ended on 31/5/2022, until 30/6/2022.
The second extended until 30/5/2022 the deadline for submitting the periodic VAT declaration for the first quarter of 2022, for paying the resulting VAT, and for submitting refund requests during the declaration period for this quarter.
