Administrative contract is an act concluded between the State or other administrative body with natural or legal persons which aims to achieve a certain goal of social interest, under conditons regulated by special rules. Administrative contract is based on administrative act. Administrative contracts are public by their name and by their nature. Administrative contracts are the scope of administrative law and they represent administrative matter so that all disputes which come from administrative contracts fall under the jurisdiction of administrative courts. Administrative contracts are very well known among other european countries. Administrative contracts in France are governed by the wish not to use exclusively administrative contracts while in Germany we have two types of administrative contracts; coordinated and subordinated. When concluded, administrative contracts can postpone due date of tax debt according to General tax law in a way that tax payer pays off his tax debt in monthly payments in accordance with the paymant plan laid out in administrative contract.Administrative contract will terminate immediately if the tay payer misses just one of his monthly payments. This thesis contains the procedure of negotiang and concluding administrative contracts, the history of administrative contracts, its advantages and its shortcomings and terminations of administrative contract in accordance with General tax law. This thesis is based on books, expert paper and articles and web page of tax administration.