If you have received a billing note and has no financial availability to pay the tax on time, you can ask to pay IRS on installments. The truth is that the tax authorities do not always give way to the much desired refund and, in certain situations, it results in an additional tax to pay.
In this case, and when the budget break does not allow to settle the entire debt at once, it is possible to resort to fractional payment. For amounts up to 5,000 euros, the process is fast and simple, as explained.
How to pay IRS in installments: conditions and procedure
Taxpayers who do not have economic conditions to make the payment in its entirety and up to the deadline stipulated by the law may apply for the tax.
However, it is necessary that they have delivered the IRS declaration within the expected period and have no debts regarding other taxes, such as VAT or IMI.
IRS debts payable in a amount of 5,000 euros or less can be paid in installments, without the need for guarantees.
The maximum number of benefits allowed is 12 and may vary according to the following table:
| Value of debt in IRS (€) | Maximum number of installments |
|---|---|
| From 204 to 350 | 2 |
| 351 to 500 | 3 |
| 501 to 650 | 4 |
| From 651 to 800 | 5 |
| From 801 to 950 | 6 |
| From 951 to 1,100 | 7 |
| From 1,101 to 1,250 | 8 |
| From 1,251 to 1,400 | 9 |
| From 1,401 to 1,550 | 10 |
| From 1,551 to 1,700 | 11 |
| From 1,701 to 5,000 | 12 |
If the taxpayer wants a higher number of installments than allowed, or if the tax amount payable exceeds 5,000 euros, then it will be necessary to provide a guarantee. It can be a bank endorsement, security or insurance, or even a mortgage.
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How to order
The request must be made electronically through the Finance Portal. To do this simply authenticate yourself with your word pass and nif and follow these steps:
- In the Finance Portal research, write “installments”;
- Choose the option “President Plans” and click “Age”;
- Select the “Registration” option;
- Choose the billing note you want and click “Simulate”;
- Select the condition “without warranty presentation” and click “Confirm”;
- Simulate the plan by choosing the number of installments according to the previous table;
- In the “Economic Reason” field indicate the reason, between the list presented;
- In the field “justification of the reason previously indicated”, briefly write the justification of the request;
- Register the request.
The request must be made up to 15 days after the term for voluntary payment (August 31), ie until September 15.
How the benefits are calculated
The total tax is divided by the number of monthly and equal installments provided for the amount in question.
The amount of each installment is rounded, and the difference is paid in the first installment, which is therefore the highest.
The amount of each installment also adds the interest rates counted on the amount of the amount from the term for voluntary payment to the month of the respective payment.
The default interest rate for state debts is set annually by the IGCP.
How and when the payment must be made
Once the request has been approved, the Tax Authority sends a monthly collection document to the taxpayer’s tax address, which must always be up to date. If it has adhered to “Via CTT”, the documents will be sent by this means.
The installments must be paid by the end of each month in cash, check, debit in account, bank transfer or postcard, finance, CTT or at a multibanco terminal.
If there is a lack of payment of any of the installments, the taxpayer loses the right to this benefit and is obliged to settle the amount in debt at once. If you do not do so, a tax enforcement process is instituted.
If you have submitted a warranty, the entity that has provided it will be called to pay the existing debt. It will have 30 days to do so, to avoid the establishment of a tax enforcement process.
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