The Special Program for Debt Reduction to the State (Programa Especial de Redução do Endividamento ao Estado, from now on words, PERES) entered in force today.
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 and Social Security 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 methods of payment are available?
a) Single payment of the full amount, by the end of 2016, benefiting from a waive of payment of interest and a waive of procedural tax executions costs
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 choose for one of the options established in PERES?
Time is pressing as the adhesion to the Program is only possible until December 20th of 2016. Those interested should state their intention to join PERES online through the Tax Authority web portal for the tax debts or, the” Segurança Social Directa”, for the contributory debts.
4. What are the benefits?
There are many advantages in using this regime.
Opting for full payment will lead to a waive of default interest, compensatory interest and the legal costs of the executive procedure. In case of opting for an installments plan, there will be a reduction in percentages ranging from 10% to 80% on default interest, compensatory interest and on the legal costs of executive process, according to the number of installments requested. By joining PERES, your fiscal and social security situation will be settled and it can be provided, if wanted, a non-debt certificate that demonstrates that your situation is fully compliant. This certificate can be used in the application for public tender.
Therefore this is a great opportunity for you to regularize your tax situation.