Eleftheria Paizanou
The incentives granted in recent years to borrowers to proceed with loan restructuring are expected to be extended by December 31, 2022. At the end of the year, the tax reliefs for this purpose expire, therefore, through seven draft laws of DISY, DIKO and EDEK, which were discussed yesterday in the Parliamentary Committee on Finance, the incentives are extended until December 31, 2022.
To be precise, the draft laws were discussed and approved with concise procedures yesterday by the members of the Finance Committee. DISY MP, Haris Georgiadis, stated that the law proposals will encourage loan restructuring. For his part, Finance Commissioner Pavlos Ioannou suggested that the incentives be extended for two years (December 31, 2023), however, the rapporteurs decided that the extension would be for one year, with the intention of discussing later whether will be resubmitted if deemed appropriate.
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With the seven draft laws, which are expected to be led in two weeks in the Plenary Session of the Parliament for the final approval, the existing regulations regarding the granting of tax reliefs and incentives are extended until December 31, 2022, in order to strengthen and promote the restructuring. loans. In particular, the tax breaks and incentives that will continue to be granted in the context of loan restructuring for another year, concern the non-payment of stamp costs arising from the restructuring of loans up to the amount of existing debts, the non-imposition of capital gains tax and non-capital gains. payment of transfer fees, in the case of transfer of real estate in the name of the lender.
The remaining incentives that will continue to be granted include the non-imposition of an extraordinary contribution for the defense of the Republic, in case of accounting profit and / or fictitious dividend, the transfer of encumbrance, in case of acquisition of real estate by the lender in the context of loan restructuring, of the real estate from the borrower to the lender.
