If your company is in a situation that temporarily prevents it from paying a tax debt, you can request deferment and payment in installments (in the case of deferrable debts).
After the payment of the extra payments, you had an important collection to recover your liquidity and to face the payments of the next weeks. But your customer has only paid you a part of what he owes you, committing to pay you the rest in September.
Situations like the one described above are common at this time of the year, and a possible solution is to request a deferment/fractionation of the next tax self-assessments.
The summer months are critical for the treasury of many companies, since the payment of the periodic VAT and withholding tax returns, together with the Corporate Income Tax, come together.
Faced with this accumulation of obligations, it is common that both companies and self-employed workers need to look for financing alternatives to meet their fiscal responsibilities. One viable option is the deferral/fractioning of tax debts offered by the Tax Agency, allowing to defer payments and alleviate the financial burden temporarily.
Deferment and payment in installments
The deferral of debts with the Tax Agency makes it possible to delay the payment of a tax debt when the economic-financial situation prevents payments from being made within the established deadlines. This request can be made both in the voluntary and enforceable periods by using an electronic certificate. It is important to note that the filing of a request in the voluntary period will prevent the start of the executive period, although it will not stop the accrual of late payment interest.
Procedure for requesting deferral
The request for debt deferral can be submitted by the interested party itself, a social collaborator or an attorney-in-fact. The process, which is carried out through the electronic headquarters of the Tax Agency, requires the following information:
- Amount of debt to be deferred.
- Reasons for the request, indicating the transitory cash flow difficulties.
- Proposal of monthly payment, indicating maturities and amounts of the installments.
- Documentation and supporting documents.
Applicable interest rate
The late payment interest applicable in 2024 remains at 4.0625%. However, if the deferral is guaranteed by a surety or surety insurance, the interest rate will be 3.25%. Interest is calculated from the day following the expiration of the term in the voluntary period until the date of expiration of the term granted and must be paid together with each fraction of the debt in the case of installments.
Maximum deferment periods
The maximum deferment period varies according to the guarantees offered:
- 60 months: with bank guarantee or surety insurance certificate.
- 36 months: with guarantee of unencumbered urban real estate.
- 24 months: with other guarantees or in the case of debts owed by individuals.
- 12 months: with total or partial waiver of guarantees.
Maximum amount deferrable without guarantee
Order HFP/311/2023 establishes that no guarantees are required for deferrals and installments of debts whose amount does not exceed 50,000 euros. This measure speeds up the procedure, allowing an almost instantaneous concession for amounts lower than this amount.
In conclusion, the deferral of debts with the Tax Agency is a useful tool for cash management in times of temporary economic difficulties. However, for longer-term financing needs, it may be more convenient to opt for financing through financial institutions.
For further information, please consult with Tax consulting
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