NGOs & Public Entities > Declaration and Payment > Financial Difficulties

Financial Difficulties

The tax administration will review the cases of taxpayers separately, analyzing, and including every factor influencing the history of the taxpayer NGOs and public entities, as well as in more details any unpaid tax.

In case when the financial circumstances prevent the entity to pay the tax liabilities in time, it may be allowed to sign at any time an agreement for payments through installments. At the same time the taxpayer shall demonstrate that it is under financial inability to pay entirely the tax liability and shall demonstrate that regardless of the financial circumstances, it is able to comply with the agreement.

The tax administration cannot reach an agreement of payment by installments in case it has initiated the procedures for the auction of the seized assets to the effect of that outstanding tax liability.

  1. The request shall be in writing and directed to the regional director or head of the unit similar to the regional directorate where the taxpayer is registered.
  2. The request must be made within 15 days from the date that the notice of assessment is deemed to be received. The Installment payment agreement shall be in writing, within 10 calendar days from the date of application and signed by the taxpayer and the regional director or head of the unit similar to him.
  3. To sign an installment payment agreement the taxpayer shall pay immediately the installments of least 20 twenty% of the liability for which the agreement is concluded.

The Installment payment agreement is concluded for a period commencing from the date of signing until the end of the next calendar year after the moment of the drafting the agreement.

  • The signing of an Installment payment agreement of a tax liability, it continues to pay the overdue tax liability, but is not considered a fine for late payment.

Once the taxable person submits this guarantee, the regional tax director may accept to sign the agreement with installment payments of the unpaid taxes.

  • The guarantee must be provided by one of the banks, whose the taxable person asking for the payment by installments is a client. In this case the bank issuing the guarantee, becomes the guarantor for the liabilities of the taxable person.

The regional director of tax when the taxable person's request is unfounded and unjustified by the circumstances, may reject the application for an installment payment agreement or require a bank guarantee before entering into such an agreement.

  • The agreement of payment by installments can be resolved by the tax administration at the first moment that the taxable person doesn’t comply with the regularity of the payments and when he does not pay the other tax liabilities arising during the period covered by the agreement.
  • In this case, the taxable person is obliged to pay all due tax liabilities covered by this agreement, within 30 calendar days from the date of the decision resolving the settlement agreement. If these obligations are not paid, the tax administration will collect the taxes in accordance with legal provisions.