The Process of Adjustment of Tax Arrears Law 2017 establishes a procedure for settling arrears of taxes which arose prior to that date by up to 60 monthly instalments. It covers all nationally-imposed taxes including income tax, value added tax, special contribution for defence (commonly known as SDC tax), capital gains tax, stamp duty and special contribution to be paid by employees, pensioners and the self-employed.
The law entered into effect on 3 July 2017, but the Tax Department announced on 14 July that the option of payment by instalments will not be available until 21 July 2017. Until then, taxpayers may obtain a waiver of 95% of any penalties and interest by submitting a completed application form at a tax office in person accompanied by a remittance for the amount outstanding as long as they have submitted all requisite returns and have no other tax liabilities outstanding.
