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Legal Regime for the Regularization and Collection of Debt of Taxpayers and Beneficiaries to the Compulsory Social Protection Management Entity – Presidential Decree No. 2/19 of March 11

Legal Regime for the Regularization and Collection of Debt of Taxpayers and Beneficiaries to the Compulsory Social Protection Management Entity – Presidential Decree No. 2/19 of March 11

Presidential Decree No. 2/19 was published on March 11, establishing the Legal Regime for the Regularization and Collection of Debt of Taxpayers and Beneficiaries to the Compulsory Social Protection Management Entity, was published.

The Diploma covers all taxpayers subject to the Compulsory Social Protection who have not fulfilled their tax obligation the payment of default interest and fines, as well as the beneficiaries who have received social benefits improperly.

As per Decree No. 2/19, debt to Compulsory Social Protection can be settled through voluntary payment or enforcement procedure.

Voluntary payment of the debt offers advantages, namely, the reduction of interest applicable and the payment in installments. The voluntary payment agreement must be reduced in writing and must include the elements stipulated in the Diploma.

Failure to comply with the clauses of the agreement, for a period of 60 (sixty) days, constitutes a fair cause for resolution by the Mandatory Social Protection and entails that the instalments become immediately due.

When not paid voluntarily, within 3 (three) months, the Obligatory Social Protection debts will be titled in a certificate issued by the Compulsory Social Protection Management Entity, constituted by an enforceable title.

Credits arising from contribution claims of the Compulsory Social Protection Management Entity, including interest and fines, enjoy a general security privilege as well as a real estate privilege over real estate existing on the taxpayer’s estate at the time of the initiation of the enforcement proceedings.