COVID-19 Global Measures continued

27 August 2020

27 August 2020 by MHA MacIntyre Hudson

Navigating global incentives and guidance in challenging times 

We provide in the list of countries alphabetically from M to Z below a broad outline of the Global responses from different Governments in relation to the Covid-19 pandemic.

Updates for Countries A to L can be found here

Malaysia

Government Link:

FAQ APA Treatment

Link to article:

Tax Incentives in Malaysia - A Boost to Foreign Manufacturers

Malta

Link to article:

Malta Fiscal Response Package Covid-19

Key Measures:

  • Eligible taxes (i.e. provisional income tax, social security contributions of self-employed persons and VAT due in March up to and including August 2020; and employee taxes, maternity fund payments and social security contributions due in March up to and including June 2020) must be settled by no later than 31 May 2021 (previously 31 October 2020).

Mauritius

Republic of Mauritius

Link to article:

Finance Act 2020

Mexico 

Government Link:

Bank support COVID-19

State Tax Measures and reliefs                           

Legal Guide for COVID-19

Economic Measures for Employee Support

Social Security Contribution Support

Key Measures:

  • The Tax Administration Service (Servicio de Administración Tributaria, SAT) has published Q&As to address the application of rule 3.17.4., introduced by the fifth version of the First Amending Resolution to the Miscellaneous Tax Resolution for fiscal year 2020, by means of which individuals are given the possibility to pay income tax due in 2019 in up to six monthly instalments.
  • No CIT or VAT deferrals, reductions or reliefs have been granted
  • Social security contributions (25% as an average of payroll costs) can be paid 12 to 24 months after the state of health emergency is lifted
  • Local incentives for State taxes such as payroll and lodging are available
  • Accelerated VAT Refunds and trade and customs facilitations are in place
  • Temporary support from Banks for natural and legal persons
  • The Mexican Social Security Institute (IMSS) announced employers may request an instalment agreement for the payment of social security contributions debts, under one of the following payment schemes:
  • up to 12 monthly instalments, at a monthly interest rate of 1.26%;
  • from 12 to 24 monthly instalments, at a monthly interest rate of 1.53%; and
  • from 24 to 48 monthly instalments, at a monthly interest rate of 1.82%.
  • Employers requesting an instalment agreement are required to make a down payment of 20% of the social security contributions due by the employer and of 100% of the social security contributions due by employees.

Montenegro

Link to article:

Covid-19-virus relief measures

Key Measures:

  • Delay of payment of loans received from financial institutions for all citizens and companies on the period of 90 days.
  • Delay of payment of taxes and contributions on salaries on the period of 90 days.
  • Loans for liquidity of the companies up to 3 mill euros – grace period 2 years at interest rate 1,5%.

Morocco

Government Link:

Press release on payment extension

Creation of the National Social Security Fund

Link to article:

Webinar: The Main Tax Measures Of The PLF Corrigendum 2020

The New Tax Regime For Regional Or International Headquarters Operating Under “Casablanca Finance City” Status

The New Tax Regime For Professional Service Companies Under “Casablanca Finance City” Status

Amending Finance Bill for the Year 2020

Increase of the Legal Minimum Salary in Morocco

Netherlands

Government Link:

Coronavirus COVID-19

Link to article:

VAT compensation reintegration costs and outplacement costs

New Zealand

Government Link:

COVID-19 (novel coronavirus)

Link to article:

Tax Loss Carry Back

Tax Talk | Wage subsidy... take three

Nigeria

Government Link:

FIRS Website

Key Measures:

The Federal Inland Revenue Service (FIRS) has extended the deadline for the filing of Companies Income Tax (CIT) returns from 31 July 2020 to 7 August 2020. This extension is applicable to companies with December accounting year end.

Norway

Government Link:

Economic measures in Norway in response to COVID-19

VAT Support due to COVID-19

Link to article:

New loan scheme improving liquidity for Norwegian companies for the coming three years

Compensation scheme for firms with reduced revenues

Overview of measures to mitigate effects of Covid-19

Key Measures:

  • Companies that are in a loss-making position in 2020 will be able to carry back losses for that year against the taxable profits for the two previous years.
  • Payment of the second instalment of advance tax payment for companies is postponed until 1 September 2020.
  • The “lower rate” of VAT has been reduced from 12% to 8% for a limited period from 20 March until 31 October 2020.

Pakistan

Key Measures:

  • The Sindh and Balochistan provincial tax authorities have extended the filing and payment deadlines for Sales Tax and Federal Excise on Services for May 2020.
  • Major tax proposals of the recent Budget, which will generally apply from 1 July 2020, are summarized below:
  • Corporate taxation
  • decrease in depreciation deduction by 50% for assets in use for the first time on or after 1 July 2020;
  • increase in deductibility threshold for aggregated non-banking expenditure under a single account from PKR 50,000 to PKR 250,000 and from PKR 10,000 to PKR 25,000 for single payments;
  • increase in deductibility threshold for non-banking payments of salary from PKR 15,000 to PKR 25,000 per month; and
  • restriction on deduction of profit on debt payable of PKR 10 million or more to associated enterprise by a foreign-controlled resident company.
  • Personal taxation
  • Capital gains derived by a resident individual from the sale of his personal residence are exempt, subject to various conditions
  • Withholding tax
  • abolishment of withholding tax on 9 sectors (education, steel smelters, functions and gatherings, cable operators and other electronic media, insurance, tobacco, etc);
  • increase in turnover threshold from PKR 50 million to PKR 100 million for associations of persons and individuals, and a similar threshold of PKR 100 million will be prescribed for a sales tax registered person to become a withholding agent for the purpose of withholding tax on payments for goods, services and contracts;
  • exemption of withholding tax on cash withdrawal to the extent of foreign remittances; and
  • collection of advance tax on auctions of immovable property in instalments.
  • Capital gains tax on immovable property
  • the different treatments for open plots and constructed property will be removed;
  • the holding period for all types of immoveable property will be limited to 4 years and the taxable gain will be reduced by 25% for every year of holding; and
  • the tax rates will be reduced by 50%.
  • Sales tax
  • extension of exemption period for COVID-19 health-related items and equipment;
  • increase in minimum threshold of supplies by retailers for obtaining CNIC of buyers from PKR 50,000 to PKR 100,000;
  • reduction of tax rate from 14% to 12% for retailers integrated online with the tax authority through their Point of Sale system; and
  • conducting of audit proceedings through electronic means.
  • Excise duties
  • Numerous changes have been proposed to the rates of excise duty on a variety of goods, including the increase in excise duties on tobacco products and the reduction in duties on cement.
  • Customs duties
  • numerous reductions and exemptions for a variety of sectors and products, including COVID-19 related items; and
  • enhancement to the scope of concessions available to Special Economic Zones.

Panama

Government Link:

Tax amnesty

Key Measures:

  • To reduce the economic impact of the COVID-19 pandemic, the tax amnesty regime has been extended until 31 December 2020. Under such regime, the deadlines for filing tax returns and information reports are extended as well, 85% of interest and penalties may be waived for taxpayers with past-year debts under certain conditions, 100% of penalties for late filings will be waived and the authority may determine the prescription of a tax debt under certain conditions as well.

Paraguay

Government Link:

Official Gazette

Key Measures:

The Executive Branch has established an exceptional VAT regime applicable to taxpayers whose activities are related to tourism and catering. Under this regime, taxpayers must apply the 10% VAT rate on 50% of the service price.

Peru

Government Link:

Resolution 120-2020/SUNAT (in local language)

Supreme Decree 155-200 EF

Resolution 099-2020

Link to article:

Find out if your company can suspend the monthly payment of income tax 

Boosting the creation of more jobs

Poland

Government Link:

Amended tax measures in Official Journal no. 695/2020 (in local language)

Link to article:

New rules for collecting withholding tax only from 2021

Tax & Legal Highlights for Real Estate - August 2020

Key Measures:

  • Poland introduces a state aid programme to support businesses in financial difficulties due to COVID-19, with the purpose of allocating resources to restructuring the companies and providing financial liquidity.

Portugal

Government Link:

Law 29/2020 (in local language)

Government and COVID-19

Tax Measures and Legislation

Link to article:

Tax Online 21/2020 | VAT - E-commerce and Quick Fixes

Expansion Program for the Social Equipment Network - 3rd Generation - Pairs 3.0

Puerto Rico

Government Link:

Circular Letter No. 20-33

Administrative Determination No. 20-17

Key Measures:

  • The Treasury Department has announced a temporary exemption from the 4% sales and use tax (Impuesto sobre Ventas y Uso, IVU) on services provided between merchants and designated professional services invoiced in April, May and June 2020, due to the COVID-19 pandemic. The exemption can be extended for additional periods of 3 months each, but not beyond 31 December 2021.
  • The Treasury Department has postponed the deadline for lessors to establish a tax terminal in order to be eligible for the sales and use tax (Impuesto sobre Ventas y Uso, IVU) exemption on commercial property leases from 30 June 2020 to 30 June 2021, due to the COVID-19 pandemic.

Romania

Government Link:

Government measures to limit the impact of COVID-19 on Romanian businesses

Link to article:

Amendments on international posting of workers.

Russia

Government Link:

Law No. 215-FZ

Law no. 172-FZ

Link to article:

Changes made to the Civil Code of the Russian Federation and the Law on LLC entered into force

Russian Ministry of Finance sent the Netherlands a proposal to revise the DTT

Key Measures:

  • Starting 1 January 2021, for companies in the IT sector, the social security contribution rate will be reduced from 14% to 7.6% and the corporate income tax rate will be reduced from 20% to 3% subject to certain criteria.

Saudi Arabia

Link to article

Government’s extension of the fiscal stimulus initiatives

Key Measures:

  • Instalment request plan is extended until 30 September 2020
  • VAT payments on imports are deferred until 30 September 2020
  • Refund request procedures are accelerated until 30 September 2020
  • Zakat and tax commitments for taxpayers that have suffered from the impact of COVID-19 Pandemic is granted a suspension until 31 August 2020.
  • Voluntarily disclosure for all tax due by amending previously submitted tax returns (i.e. submitted before 18 March 2020)
  • Filing any outstanding tax returns or submitting an instalment plan request before 30 September 2020.

Serbia 

Government Link:

Ministry of Finance

Link to article:

The Regulation on Fiscal Benefits and Direct Payments to Private Sector and Monetary Support to Citizens

Covid-19-virus relief measures

Key Measures:

  • VAT exemption applies for supplies of goods and services without consideration to the Ministry of Healthcare, the Republic Health Insurance Fund or a publicly owned health institution. The exemption applies from 15 March 2020 until the termination of the state of emergency.
  • Deferral of payment of salary tax and social contributions for salary payments during the state of emergency (but at least three months). This measure is offered to all privately-owned companies. The payment will start at the beginning 2021 in up to 24 instalments.
  • Deferral of advance payments for corporate income tax for the 2nd quarter 2020.
  • Donors become VAT exempt.

Singapore

Key Measures:

Today's Taxes, Yesterday's Terms: #Reimagining Old Concepts To Understand a #NewNormal (Article by Loh Eng Kiat, Partner & Practice Leader)

Slovakia

Government Link:

Government Measures

Link to article:

Tax Updates

Labour Code

Vehicle tax: Time limit for filing the tax return and the due date of the tax

Income tax

Tax administration (Tax Code) and administrative fees

Measures on importation of goods

Social Security and Health Insurance

Covid-19-virus relief measures

7 measures connected with Covid-19

Key Measures:

  • All employers who have had to limit or stop their activities may provide wage compensation of 80% of the employee's average monthly earnings, but at least equal to the minimum wage.
  • Extension of filing deadline for tax returns for all taxpayers from 31 March 2020 to 30 June 2020.
  • Exemption from penalties for late payments of taxes.
  • Temporary abolition of social insurance and health insurance contributions for self-employed entrepreneurs over three months (March, April and May). These contributions will be split over the following 18 months.
  • Exemption of wage payments to employees from individual income tax and social insurance and health insurance contributions.
  • Introduction of systematic support of business investments in fixed assets, specifically a super tax deduction and accelerated depreciation will be granted.
  • Amendments to the rules for tax losses.

Slovenia

Link to article:

Extended tax relief on import of goods

Income tax extension

FAQ COVID-19 Measures

Key Measures:

  • Slovenian government extends until 31 October 2020 the tax relief on the import of goods to combat the COVID-19 pandemic.
  • The deadline for filling 2019 personal income tax return has been extended until 31 August 2020.
  • Tax authorities launch FAQ on COVID-19 tax measures.

South Africa

Government Link:

Disaster Management Bill

Link to article:

Government’s extension of the fiscal stimulus initiatives

Key Measures:  

  • Instalment request plan is extended until 30 September 2020
  • VAT payments on imports are deferred until 30 September 2020
  • Refund request procedures are accelerated until 30 September 2020
  • Zakat and tax commitments for taxpayers that have suffered from the impact of COVID-19 Pandemic is granted a suspension until 31 August 2020.
  • Voluntarily disclosure for all tax due by amending previously submitted tax returns (i.e. submitted before 18 March 2020)
  • Filing any outstanding tax returns or submitting an instalment plan request before 30 September 2020.

Spain

Government Link:

Royal Decree Law 27/2020

Key Measures:

  • Government approves tax breaks for the UEFA Women´s Champions League 2020.
  • Extension to 31 October 2020 of zero-rated VAT treatment for supplies, imports and intra-Community acquisitions of medical material and equipment aimed at combatting the effects of COVID-19 to be supplied to public entities, non-profit or social entities.

Sweden

Government Link:

Compensation Scheme

Link to article:

Short-time work allowance

Key Measures:

  • European Commission approves support scheme which compensates passenger ferry companies for damages suffered due to the COVID-19 pandemic and the travel restrictions imposed by several countries. Under the scheme, the ferry companies receive compensation for damages incurred between 24 March and 31 July 2020 in the form of tax deductions on wage-related costs for seafarers.
  • The Swedish government has decided to postpone the reporting deadlines under the law implementing Council Directive (EU) 2018/822, regarding mandatory automatic exchange of information in the field of taxation relating to reportable cross-border arrangements (DAC6). Accordingly, arrangements for the period between 1 July and 31 December 2020 must be reported by latest on 31 January 2021. Historical reporting (reportable arrangements from 25 June 2018 to 30 June 2020) must be reported by the latest on 28 February 2021.

Switzerland

Government Link:

Coronavirus: Federal Council adopts emergency ordinance on granting of credits with joint and several federal guarantees

Coronavirus: Federal Council approves deactivation of countercyclical capital buffer

Economic Measures

Link to article:

Corona virus - what you need to know (central resource in local language)

Key Measures – Can apply for extensions regarding tax payments as follows:

  • No interest is due on late payment of federal taxes (currently excluding cantonal/communal taxes, fines or other costs) from 1 March 2020 to 31 December 2020
  • No interest is due on late payments of VAT, special excise duties, incentive taxes and customs duties for the period from 20 March 2020 to 31 December 2020
  • Withholding tax and stamp duties are excluded from this waiver of default interest
  • Short-time work compensation is now granted for six months

Thailand 

Government Link:

Corona Virus Disease (COVID-19)

Key Measures:

  • Additional deductions for salary payments and interest costs incurred by small and medium-sized enterprises (SMEs) are granted:
    • an additional 200% deduction based on actual salary payments made from 1 April 2020 to 31 July 2020; and
    • an additional 50% deduction on interest on loans obtained from the government's low-interest loan initiative incurred or accruing from 1 April 2020 to 31 December 2020.
  • Thailand grants temporary tax exemptions for debt restructuring.

Tunisia 

Key Measures:

  • A temporary contribution of 2% on taxable profits as determined for corporate tax purposes with respect to tax years 2020 and 2021 (with a minimum of TND 5,000) is introduced for banks, financial institutions and insurance and reinsurance companies. The contribution is not deductible for corporate tax purposes and must be paid before 31 October 2020 for tax year 2020.
  • Partial or full forgiveness of loans interests  or insurance premiums by banks, insurance companies or similar financial intuitions in the context of the COVID-19 measures may not trigger any corporate tax liability for those entities in respect of the year in which the forgiveness occurred.
  • Interest on solidarity government bonds to be issued in 2020 to fund the State Budget will be exempt from individual income tax and withholding tax.
  • The deadline for the first 2020 prepayment for corporate tax purposes due on 28 June 2020 is postponed to 20 February 2021 for companies that are affected by the COVID-19 outbreak.
  • The deadline to submit the employer declaration (required by article 55.III of the Income Tax Code) with respect to tax year 2020 is postponed to 30 September 2020.
  • Goods imported under the inward processing regime may be sold or exported without paying any late interest payment or penalties until 30 September 2020.

Turkey

Government Link:

Presidential Decision VAT Reduction (in local language)

Presidential Decision WHT Rate (in local language)

Link to article:

Tax Circular 69: BITT Will Not Be Applied In Foreign Exchange Sales To Financial Institutions Residing Abroad

Ukraine

Link to article:

Penalties and Tax Inspections

Key Measures - From March 18, 2020 to May 31, 2020:

  • A moratorium has been established for conducting documentary and factual tax inspection, except for documented unscheduled tax inspections on the grounds specified in subparagraph 78.1.8 of the Tax Code of Ukraine
  • Revision of scheduled inspections (audits). Inspection (audits), started before March 18, will be stopped and continued after May 31, 2020.
  • Statute of limitations for tax inspections will be extended accordingly for 2.5 months.

United Arab Emirates

Government Link:

Government portal

Key Measures:

  • The Government of Dubai has announced a new economic stimulus package worth AED 1.5 billion to mitigate the consequences of the COVID-19 pandemic. The package, announced on 11 July 2020, provides the following measures:
    • reimbursement of construction sector deposits/guarantees by the Dubai Municipality;
    • refund of 50% of municipality fees on sales made by hotels and restaurants for the period from July to December 2020;
    • 50% of the "Dirham tourism fee" until December 2020;
    • reduction of 80% on selected customs penalties;
    • exemption from commercial and educational licence renewal fee for private schools licence and waiver of penalties;
    • extension of the temporary entry permits obtained by art exhibitions for artworks loaned from institutions outside Dubai until December 2020;
    • extension of the freeze of the marker fee until end of September 2020;
    • cancellation of all fines charged for late payment of government service fees;
    • renewal of commercial licences without mandatory renewal of lease contracts;
    • cancellation of the 25% down payment requirement for government fees in instalments;
    • exemption from fees for sales and special offers;
    • extension of the waiver of AED 50,000 bank guarantee;
    • refund of bank and cash guarantees paid by customs clearance companies; and reduction of the fees on customs documents from AED 50 to AED 5 for each transaction.

United Kingdom

Government Link:

Finance Act 2020

Link to article:

Coronavirus – Self-Employment Income Support Scheme

Moving goods under the Northern Ireland Protocol

Real Estate Matters Issue 16

Going abroad during the coronavirus pandemic: when holidays can lead to unauthorised absence

Spotlight on Covid-19 (central resource)

Key Measures:

  • The Finance Act 2020 introduces the following highlights:
    • Changes to the IR35 legislation. From 6 April 2021, all public sector clients in addition to medium-sized or large private sector clients will be responsible for deciding a worker's employment status;
    • Changes to the Loan Charge legislation. The changes limit the loan charge's application to loans entered into force after 9 December 2010;
    • Changes to principal private residence relief concerning, in particular, the exemption period at the end of ownership that is reduced to 9 months in most cases;
    • The introduction of the Digital Services Tax.
    • Changes to the General Anti Abuse Rule (GAAR), including protecting adjustments under the GAAR before the time limit expires and the issuing of protective GAAR notices  

United States

Government Link:

Announcement 2020-11 (2020-33 IRB 385)

President defers payroll tax until end of year

Notice 2020-61

FAQs Payroll Tax Deferral

Proposed regulations (REG-111879-20) Temporary regulations excess credits

Link to article:

CommuniTIES: The impact of COVID-19 on municipal utilities

Employee retention credit: exploring the benefit for banks

Paycheck Protection Program (PPP) FAQ

PPP revisited – loan forgiveness, part 2
PPP revisited – eligible costs and covered period, part 1

CARES Act student and institutional aid FAQ

BuzzHouse: COVID-19’s impact on HUD financing for multifamily housing

Key Measures:

  • Corrections to temporary regulations on net operating losses of consolidated corporate groups.
  • President orders the deferral of withholding, deposit and payment of employee payroll taxes from 1 September 2020 until the end of the year, including possible forgiveness.
  • IRS issues guidance on the relief provided under the CARES Act for single-employer defined benefit pension plans.

Uruguay

Government Link:

Decree 209/020

Key Measures:

  • The government has authorized companies operating under the duty-free shops regime to permanently and definitively import goods that are stored in specialized custom warehouses.

Venezuela

Government Link:

Administrative Providence 015-049

Key Measures:

  • The deadline for filing the Science and Technology special contribution return for fiscal year 2019 has been extended from 31 July 2020 to 31 August 2020, due to the state of emergency caused by the COVID-19 pandemic.
  • The Executive Branch has extended, until 31 December 2020, the application of the customs duties and VAT exemption on the import of movable tangible goods (new or used).
  • The tax authorities (SENIAT) have provided rules on the exemption from financial transaction tax on the sale of fuels, supplies and additives, introduced through Decree 4220.
  • Import and sale of fuel are exempt from customs, VAT and Financial Transaction Tax.

Vietnam

Government Link:

Ministry of Finance

Key Measures:

  • Vietnam Approves 30% Corporate Income Tax rate reduction for 2020 applicable to entities with annual revenues up to VND 200 billion.