On the past October 6th of 2016, in a Council of Ministers’ meeting, the Government approved the Special Program for Debt Reduction to the State (Programa Especial de Redução do Endividamento ao Estado, from now on words, PERES).
According to the information available, Caiado Guerreiro answers some of the most frequently asked questions that are raised about PERES:
1. Who can benefit from this regime?
Natural and legal persons with tax debts, in Portugal and abroad, that have not been paid by May 31st, 2016 or Social Security debts that have not been paid by December 31st, 2015.
2. Which methode of payment exist?
a) Single payment, by the end of 2016, with exemption of payment of interest; or,
b) Adhering to a payment plan in installments, with a maximum lenght of 11 years, corresponding to 150 installments, with no need to provide any kind of collateral. The initial payment will have to correspond to 8% of the debt.
3. What is the time frame to opt for one of the procedures established in PERES?
The adhesion to the Program is possibile until December 20th of 2016. Those interested should demonstrate their intention to join the PERES via online to the Tax Authority for the tax debts or, the Institute of Social Security, for the contributory debts .
4. What are the benefits?
Opting for the full payment will lead to the forgiveness of default interest, compensatory interest and the legal costs of the executive procedure.
In case of oppting for the installments plan, there will be a reduction in percentages from 10% to 80% on default interest, compensatory interest and on the legal costs of the executive procedure, according to the number of installments requested.
Therefore it is a great opportunity for you to regularize your tax situation.