Further to specific transitional rules being a part of the amendments to the Tax and Social Security Proceedings Code (“TSSPC”), public liabilities with an expired term of payment before 1 January 2008 will be subject to the ‘single account’ rules (Art. 169, para 4 TSSPC) after 1 January 2014.

Hence, the law provides for a grace period of one year after which those liabilities shall be considered settled with the first amounts that persons pay for taxes and social security contributions in 2014. The oldest public liability will be paid off first. Where two or more public liabilities expire on the same date, they will be paid off proportionally. Health insurance contributions due by some persons such as self-insured persons are an exception to the above rule: an application can be made to pay them off first (under Art. 169, para. 4 of the Code).

We would advise that during the said grace period (i.e. until 31 December 2013), all individuals and legal entities to check their tax/social security account for outstanding taxes and social security contributions and to submit an application for deletion of any public liabilities with an expired term of payment before 1 January 2008, which are also subject to statute of limitation. (The ‘single account’ rules apply only to taxes and social security obligations subject to audit by the National Revenue Agency and do not apply to local taxes and fees collected by the municipal revenue authorities.)

For this purpose, persons can use the National Revenue Agency’s online services to check their tax/social security account for outstanding taxes and social security contributions. The account can be accessed using an electronic signature or personal identification code issued by the NRA. It is also possible to check public liabilities at the relevant NRA office for the individual’s permanent address or the company’s registered address.

Law: changes to the Tax and Social Security Proceedings Code and Health Insurance Act