Merciful summer for tax debtors

On 25 January 2023, the government approved the draft bill on extraordinary waiver and extinction of certain tax debts (the so-called “merciful tax summer”), which we have already informed you about in this article here. The aim of the draft bill is to give debtors the opportunity to get rid of debts on penalties, interest, small arrears and other tax accessories.

In the original draft bill, the period of entitlement to waiver of accessories was linked to arrears that incurred up to 30 June 2022. The new formulation of the proposed law provides for a reference period until 30 September 2022. This also entails a “grace period”, in which debtors must pay the principal of the debt. From the original bill, which set the range of the grace period from 1 July 2023 to 2 October 2023, the period has been extended from 1 July 2023 to 30 November 2023. It is also possible to pay the principal in up to 4 instalments, but no later than 17 months after the beginning of the grace period.

Merciful summer for social security debtors

The government has also approved the so-called grace summer for insurance, which will allow debtors to get rid of unpaid obligations to the state without having to pay penalties or enforcement costs. Compared to the merciful summer I and II, the waiver of liabilities also applies to debts that were being recovered by means other than bailiffs (so-called administrative enforcement), which was not possible in the previous case. The waiver of penalties will apply to both persons and legal entities.

As with tax debts, the period of entitlement to waiver of penalties and enforcement costs is linked to registered arrears incurred by 30 September 2022. Payment of the outstanding premium must be made by 30 November 2023 at the latest. If necessary, an instalment scheme can be arranged.

Author: Roman Burnus, Marek Toráč