COVID-19 Global Measures

27 August 2020

Navigating global incentives and guidance in challenging times 

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

Updates for Countries M to Z can be found here

Argentina 

Government Link:

General Resolution 4791 (in local language)

COVID-19 resource page

Key Measures:

  • Tax authorities have further extended, until 30 August 2020, the suspension of their activities.

Albania 

Government Link:

Financial Economic Measures for COVID-19

Link to article:

Albania: Covid-19-virus relief measures (Notice 4)

Albania: Covid-19-virus relief measures (Notice 5)

Albania: Covid-19-virus relief measures (Notice 6)

Key Measures:

  • Up to 100 million USD sovereign guarantee for cash liquidity for companies that need to borrow money from the banks to pay salaries
  • Up to 57 million USD as a remedy for small businesses, unemployment, and  the families in need
  • Postponement of the income tax payments on the second half of the year for businesses with a turnover 18,000 USD – 123,000 USD
  • Postponement of 2019 filing from 31 March 2020 to  1 June 2020
  • Legal entities and taxpayers registered for CIT purposes may submit Annual Financial Statements for FY2019 until July 31st 2020.
  • Removement of profit tax for the tax year 2020 for taxpayers with an annual turnover up to ALL 14 Million
  • Postponing prepayment of profit tax for certain taxpayers
  • Extension of deadline of filing of individual tax return for individuals with an annual income exceeding ALL 2 million in 2019 from 30 April to 32 July.

Australia 

Government Link:

Working from home ATO Support

Link to article:

 

Extension of Victorian land tax relief measures

Business Radar - Understanding the businesses that drive Australia’s economy

Key Measures:

The Victorian Government has announced further land tax relief measures, comprising an increased 50% land tax discount for eligible landlords and a new 25% land tax discount for eligible owner-occupiers

Austria

Government Link:

Austria COVID-19 Relief

Link to article:

Update: 5% sales tax rate for gastronomy

Guidelines for COVID-19 Investment Premium and the eligible costs

Belgium

Government Link:

Circular 2020/C/103

Clarification on unused investment deductions

Link to article:

The corona crisis: support measures and recovery measures (Updated as of Aug 26)

Consumer checks for staff

Key Measures:

  • The Federal Public Service for Finance has clarified that the temporary 50% wage exemption is not applicable to holiday pay, end-of year bonuses or arrears. In addition, 50% of the tax withheld from the employee can be added to the company’s equity.
  • Finance authority clarifies that the unused investment deduction of fixed assets purchased during 2019 can be carried forward 2 new taxable periods.

Bolivia

Government Link:

Decree 4298 (in local language)

Key Measures:

  • Until 31 December 2020, corporate income and VAT taxpayers are exceptionally allowed to deduct expenses and input VAT credit on purchases of food, biosafety supplies, medicines, private health services and domestic transportation made on behalf of their employees. Deductions are not subject to the statutory limit of 8.33% of the total payroll amount
  • Corporate income taxpayers (other than mining and hydrocarbons companies) may apply an accelerated depreciation method for assets acquired between 1 April and 31 December 2020.
  • Bad debts calculated under article 17-c) of Supreme Decree 24051 are deductible for corporate income tax purposes for 2020. In this respect, for the second year, taxpayers may consider the amount of real bad debts for 2019 or 60% of real bad debts for 2020, whichever is greater.
  • Taxpayers that fall under the category "RESTO"  may file monthly VAT and transactions tax returns on a quarterly basis. This applies for fiscal periods from July to December 2020.
  • Until 31 December 2020, taxpayers subject to RC-IVA may deduct an additional amount equivalent to 20% of the VAT included in invoices for purchases of products made in Bolivia.
  • Until 31 December 2021, 50% of the social security contributions paid by employers may be considered payments made to the Tax Administration for pending VAT debts. This measure is limited to contributions paid on wages amounting up to 4 national minimum salaries (i.e. approximately USD 1220).
  • Until 31 December 2021, professionals providing independent services may deduct VAT and social security contributions from the taxable base of corporate income tax.
  • Customs taxes and VAT on imports may be paid according to an instalment agreement of up to 36 months.
  • Until 31 December 2021, a 0% customs tax rate applies to the import of specific machinery, equipment and functional units for the food, agri-food, textile and metallurgical industries.
  • Due dates for filing income tax returns and for making tax payments for fiscal year ended on 31 March 2020 is extended to 30 October 2020. This extension only applies to industrial companies (oil and gas companies are excluded from this benefit).
  • Industrial companies may pay corporate income tax in instalments until 31 December 2020, with no additional charges or penalties, provided that 50% of the tax liability is paid until 30 October 2020.
  • To support entrepreneurship, the government has set up a special regime for entrepreneurs (Sistema Integrado Especial de Transición para Emprendedores al Régimen General, SIETE-RG). The main features of the regime are the following:
    • it consolidates corporate income tax, transaction tax and VAT into one single tax (monotributo) with a tax rate of 5%, to be applied to gross sales declared by the taxpayer payable on a bimonthly basis.
    • taxpayers under this regime are required to issue invoices authorized by the Tax Administration. Such invoices do not generate VAT debit or credit, but customers receiving them are allowed to offset 5% of the price indicated in the invoice against their VAT and RC-VAT tax liability;
    • taxpayers under the regime may accumulate VAT input credit from purchases related to their activities and apply it as valid VAT input credit in case they change to the general regime of taxation; and
    • taxpayers will be automatically removed from this regime after 3 years or in cases where their annual income exceeds BOB 250,000.
  • Bolivia postpones filing and payment deadlines for the manufacture and construction sector for taxpayers with fiscal year ended in March 2020. Accordingly, the deadline for payment and submission of annual tax returns, financial statements and transfer pricing files is postponed to 30 October 2020.
  • Moreover, deadline for making instalment payments, including payments due on 31 July 2020, is further postponed to 31 August 2020. Therefore, monthly instalments will be rescheduled starting from 31 August 2020.

Brazil

Government Link:

Normative Instruction 1971

Complementary Law 174/2020

Ordinance 18731/2020

Key Measures:

  • Deadline for reporting information on financial operations corresponding to the first half of the year (e-Financiera) is extended until 30 October 2020.

Bulgaria

Government Link:

Reduced VAT Rate (in local language)

Key Measures:

  • The Bulgarian government officially relieved a particular category of enterprises from the garbage collection and garbage transportation fee. As a consequence of the relief, municipalities may exempt the aforementioned category.

Canada

Government Link:

Guidance on International income tax issues raised by the COVID-19 crisis

Link to article:

Employee mental health: How and why to build support

COVID-19: Business guidance (updated as at 28 July 2020)

Key Measures:

  • CRA grants an extension of the tax payment due date for current year individual, corporate, and trust income tax returns, including instalment payments, from 1 September 2020 to 30 September 2020.
  • CRA grants a waiver of penalties and interest if payments are made by the extended deadline of 30 September 2020, including the late-filing penalty as long as the return is filed by September 30, 2020.
  • CRA grants a waiver of interest on existing tax debts related to individual, corporate, and trust income tax returns from 1 April 2020 to 30 September 2020 and from 1 April 2020, to 30 June 2020, for goods and services tax/harmonized sales tax (GST/HST).
  • The CRA stated that the previously extended filing due dates for individual, corporate, and trust income tax returns will remain unchanged, but also stated that, in recognition of the difficult circumstances faced by Canadians, the CRA will not impose late-filing penalties where a current year individual, corporation, or trust return is filed late provided that it is filed by 30 September 2020.
  • The CRA further noted that if a 2019 individual tax return has not been assessed, the CRA is calculating benefits and/or credits for the July to September 2020 payments based on information from 2018 tax returns. However, if 2019 individual tax returns are not received and assessed by early September 2020, estimated benefits and/or credits will stop in October 2020 and individuals may have to repay the amounts that were issued as of July 2020.

Chile

Government Link:

Resolution 76/2020 (in local language)

Resolution 77/2020 (in local language)

Key Measures:

  • The tax administration has extended, from 31 July 2020 to 30 September 2020, the deadline for changing tax regimes or accounting methods by companies subject to corporate income tax.

China

Government Link:

State Tax Administration – Press Releases

Link to article:

The state has successively issued four batches of preferential tax and fee policies (in local language)

Incentive overview

See the "new butterfly change" of Guangdong's tax business environment (in local language)

State Administration of Taxation: Shanxi, Guangxi and other places have opened mobile tax accounting functions, which will be opened in batches (in local language)

Key Measures:

  • China extends the period of exemption of social security contributions for SME’s to the end of December 2020 and the period of 50% reduction of social security contributions for large enterprises to the end of June 2020.
  • Other enterprises adversely affected by COVID-19 may defer the contributions payable to social security insurances to the end of December 2020 without penalty. It is also provided that the lower limit of the individual payment base of social security insurance in the year 2019 can be used for the year 2020.

Columbia

Government Link:

Tax Portal

Key Measures:

  • The automatic mechanism for the refund of income tax and VAT may be applied by taxpayers that support up to 25% (ordinarily, at least 85%) of their costs, expenses or input VAT through electronic invoices. Import declarations are also considered as documentation supporting costs and expenses.

Costa Rica 

Government Link:

Law 9882

Key Measures:

  • Until 1 July 2021, tourism services will be exempt from VAT. After such date, a reduced VAT rate will be applicable until 30 June 2023.

Croatia

Government Link:

Government of Croatia News

Newest Economic Support Measures

Link to article:

Croatia: Covid-19 measures

Supplement to the criteria for May and measures for June 2020

Key Measures:

  • DAC6 reporting deadlines extended by 6 months..

Cyprus

Government Link:

COVID-19 in Cyprus

Link to article:

Cyprus And Russia Agreed On A Protocol To Amend The Double Tax Treaty Between The Two Countries As From 1 January 2021

How To Choose The Restructuring That Suits You

Czech Republic 

Government Link:

Government of the Czech Republic

Measures adopted by the Czech Government against the coronavirus

Link to article:

Significant Tax Changes

Key Measures:

  • Automobiles with a permitted weight over 3.5 tons, annual tax rates have been reduced in order for Czech road tax rates for these vehicles not to be markedly higher in comparison to other states.
  • In the context of support for agricultural enterprise, there is a shortening of the deadline for returning a returnable overpayment on consumer tax from so-called green fuel, from 60 days to 15 (if the payment assessment is declared) or 40 days (if the payment assessment is not declared).
  • In order to support certain segments of the economy, VAT on certain services has been reduced from 15 % to 10 %.  The change of rates concerns accommodation services, personal transport by ski-tows, sports events, use of sports facilities and use of Turkish baths, saunas, steaming baths and salt caves.

Denmark

Government Link:

Coronavirus/COVID-19 in Denmark and border crossing

Link to article:

The tax future for corporation after COVID-19

News about compensation packages in connection with Covid-19 (in local language)

Dominican Republic

Government Link: 

Temporary exemption on tax of transfer and industrialized goods

Key Measures:

  • The tax authorities have extended, until 3 September 2020, the temporary exemption from the tax on the transfer of industrialized goods and services (ITBIS) on the import or transfer of certain medical supplies and related equipment to the local market.
  • Authorities have announced an exemption from the monthly advanced tax payments relating to July 2020.

Ecuador

Government Link:    

Administrative Resolution Exceptional Advance Payments

Key Measures:

  • The Constitutional Court has decided that the exceptional income tax advance payment for fiscal year 2020 aimed at covering expenses to tackle the effects of the COVID-19 pandemic is unconstitutional. Therefore, taxpayers having already made exceptional income advance tax payments may request the refund of the amount paid, apply such amount as a tax credit or keep it as a voluntary income tax advance payment.  

El Salvador

Government Link:

Tax Authority News

Key Measures:

  • The deadline for appointing tax auditors and filing the audit report for fiscal year 2019 has been extended to 31 July 2020;
  • The deadline for filing financial statements has been extended to 30 June 2020;

Finland

Government Link:

Government- General Information 

Link to article:

Government proposes extensive economic measures to minimise the impact of the coronavirus epidemic

Key Measures:

  • The government has published an extensive report on how to navigate Finland out of the economic crisis the COVID-19 pandemic has caused. The plan includes the following measures:
    • tax increases should be targeted to wealthy and elderly individuals so the measures would cause as little as possible disturbances in the economic activities;
    • increasing especially real estate taxes;
    • the tax base for corporate taxes should be widened, e.g. by reducing the preferential tax treatment of dividends received from non-listed companies;
    • increasing the tax burden on fossil fuel; and
    • increasing preferably the reduced VAT rates instead of the general VAT rate.

France 

Government Link:

Press Release on payment plans

Link to article:

Coronavirus (COVID-19) and businesses: can you benefit from a tax settlement plan? (local language)

Coronavirus (COVID-19): an exemption from CFE for which companies? (local language)

Key Measures:

Government implements payment plans to allow SME’S to pay direct and indirect taxes due between 1 March 2020 and 31 May 2020 over a 3 year period.

Germany

Government Link:

Federal Office of Economy COVID-19 Updates

COVID-19 Social programs

European Commission approves umbrella aid

Link to article:

Corona loan especially for non-profit organizations

Prohibition of Corona-related distance measurements: Works council's claim for injunctive relief

A new challenge for companies in terms of tax and social security obligations

Webinar: "Zero-Based-Budgeting – From Zero to Hero" (8 September 2020)

Ghana

Government Link:

Revenue Authority website

Key Measures:

  • Government announces a second reporting window from 1 July to 30 September 2020 for the submission of 2019 reports by the reporting financial institutions under the Common Reporting Standard.

Gibralter

Government Link:

HM Government of Gibraltar (Covid-19)

Link to article:

Government announces Gibraltar Disruption Guarantee Scheme

Government welcomes EU approval for COVID business measures

Key Measures:

  • Extensions for reporting deadlines under DAC6, CRS and FATCA
  • The deadline for intermediaries and/or relevant taxpayers to report cross-border arrangements that were implemented or made available from 25 June 2018 to 30 June 2020, is extended from 31 August 2020 to 28 February 2021.
  • The 30-day reporting period for reportable cross-border arrangements that are implemented or made available between 1 July 2020 and 31 December 2020, starts on 1 January 2021.
  • For periodic reporting on marketable cross-border arrangements (i.e. arrangements that are designed and marketed without a need to be customized), the first reporting is due by 30 April 2021.
  • The automatic exchange of the above information will take place for the first time on 30 April 2021.
  • The Income Tax Office issued guidance for submitting the P8 return (Employer annual declaration) for the tax year 2019/2020. According to the guidance, the new form now includes the option for employers to report when they had inactive employees receiving subsidized salaries between April and June 2020 under the BEAT scheme If so, no BEAT payment should be included in this declaration as such income is exempt from withholding tax and social security contributions. Once the form is complete, the employer may submit the file directly to the Income Tax online services

Greece

Government Link:

Circular clarifying reduced advance payments

Extension of social security debt payments

Key Measures:

  • Tax authority clarifies the reduction of the 2019 advance payments, stating it will apply to companies and individuals carrying on business activities, which are taxable persons for VAT purposes. In addition, the revenue earned during the first 6 months of 2020 must have been reduced compared to their revenues earned during the first 6 months of 2019. For companies and individuals that are not subject to VAT, the advance payments will be reduced by 50%.

Guatemala

Government Link:

Government Actions against COVID-19

Link to article:

Decree 12 2020 Publication and Analysis

COVID-19 Updates

Client Communication COVID-19 Measure implemented in Guatemala

Key Measures:

  • An extraordinary contribution for the crisis caused by the COVID-19 pandemic has been proposed and is currently under analysis by Congress.

Honduras

Government Link:

Press Release SAR RRPP 030-2020

Key Measures:

  • SMEs may file corporate income tax returns for fiscal year 2019 by 31 August 2020 (the previous deadline was 30 June 2020).

Hong Kong

Government Link:

Circular Letter to Tax Representatives

Key Measures:

  • The IRD has extended the deadline for filing profits tax returns for 2019/20 with Accounting Date Code D from 17 August 2020 to 15 September 2020.

Hungary

Link to article:

Covid-19-virus relief measures

Key Measures:

  • The parliament has approved a draft bill on the extension of reporting deadlines for intermediaries or relevant taxpayers under Directive (EU) 2018/822 (DAC6) following the adoption of Council Directive (EU) 2020/876 in light of the ongoing COVID-19 pandemic
  • Reporting time framework
    • mainstream reporting (30-day period to report new cross-border arrangements)
    • historical reporting (reportable arrangements from 25 June 2018 to 30 June 2020)
    • periodic reporting on marketable arrangements
  • Reporting deadline
    • reporting period starts on 1 January 2021 instead of 1 July 2020
    • 28 February 2021 instead of 31 August 2020
    • first reporting by 30 April 2021 instead of recurrent reporting after every 3 months

Iceland 

Government Link:

Government of Iceland - Measures in response to COVID19

Icelandic Government announces 1.6bn USD response package to the COVID-19 crisis

India

Government Link:

Income Tax Department

Key Measures:

  • India further extends FY 2018-19 Income Tax Return filing deadline to 30 September 2020. The extension announcement also stipulates that the tax paid by an individual resident before the due date (before the extension) will be deemed to be the advance tax for purposes of computing the tax payable under section 140A of the Income Tax Act, as amended.

Indonesia 

Government Link:

Ministry of Foreign Affairs of the Republic of Indonesia

Official Government Tax Regulations

Link to article:

The Indonesian Government has taken action via a Tax stimulus

Key Measures:

  • VAT and tax exemptions on the supply of medicines, medical equipment and other related services that are necessary in handling the COVID-19 pandemic.
  • Employee Income Tax of an employee who has an income up to IDR 200 Million in the manufacturing industry will be borne by the Government within 6 ( six ) months commencing from April to September 2020
  • Income tax exemptions of article 22 of 19 certain sectors within 6 months commencing from April to September 2020.
  • Income Tax reduction up to 30% of Article 25 of 19 certain sectors within 6 months commencing from April to September 2020
  • Accelerated VAT refund of 19 certain sectors within 6 months commencing from April to September 2020
  • The government will bear the cost of employee income tax for the months of April - September 2020 for employees who receive income from an employer that has a business classification reported on its 2018 corporate income tax return as among those classifications listed in the Attachment A of PMK-23, or is declared as a company granted with import facility for export purposes.

Ireland 

Government Link:

Guidance on Income Tax Relief

Guidance on accelerated loss relief

E-brief 142/2020

Link to article:

Business Recovery: Cost Control and Reduction

Israel 

Government Link:

Ministry of Finance

Link to article:

A grant for participation in fixed expenses for businesses with a turnover of up to NIS 400 million, due to the spread of the corona virus

Additional relief issued by the Tax Authority

Italy 

Government Link:

Tax administration Italy

Key Measures:

  • Tax authorities issue guidelines and clarifications on COVID-19 tax measures. Article in local language available here.

Japan

Link to article:

Government updates on bank loan supports and corporate income taxes

Key Measures:

  • Special measures will be established to defer the payment of national taxes, local taxes and social security contributions for one year without collateral and delinquent tax for businesses, the gross income of which has been significantly reduced by about 20% or more in comparison with a corresponding period in the previous year on and after 1 February 2020 due to COVID-19.
  • Net operating loss (NOL) is available for SMEs with registered capital of which is JPY 100 million or less and middle-level enterprises with the registered capital of which is between JPY 100 million and JPY 1 billion. These measures will be applied to business years ending between 1 February 2020 and 31 January 2022.
  • Exemption of stamp duty for contracts on special loans
  • Depreciable assets subject to special reduced tax rates for the realization of productivity enhancement for 2 years to 31 March 2023.
  • Reduction of local real property tax and city planning tax.
  • Japan Finance Corporation has commenced to provide loan supports of up to JPY300 million (without any collateral) in relation to the Covid-19 for companies whose sales for the last one month have been decreased by at least 5% compared to the same month of last year or the year before last
  • Corporate income taxes - There are no corporate income taxes or consumption tax deadline delays issued by the Government of Japan as of today. The measures only apply to individuals to date

Jersey

Government Link:

Covid-19 Help and Information for Businesses

COVID-19 Information Hub

Key Measures:

  • Temporary reduction of social security contributions to be due by employees from 6% to 4%. This measure, if approved by the States Assembly, will run for 9 months from 1 October 2020 to 30 June 2021;
  • Extension of the deadline for local businesses to repay their social security contributions and goods and services tax (GST) over a period of 2 years. Initially, employers could apply for a deferral of only 1 year to repay their social security contributions.
  • The abolition of payment of tax on prior-year basis. Further details will be issued in due course.

Jordan

Link to article:

Defence Order on employment measures

Key Measures:

  • All workers in private sector institutions and establishments or any other entity are entitled to their usual wages for the period from 19 March 2020 to 31 March 2020. Further measures apply for April and beyond.
  • Affected employers can benefit from economic protection programs according to the conditions established for each of them. The government works to grant incentives to employers who are obligated to pay workers' wages in full from the start of the Defense Law until the end of its implementation.

Kenya 

Key Measures:

  • The following exemptions have been repealed:
    • dividends received by registered venture capital companies, special economic zone (SEZ) enterprises, developers and operators licensed under the Special Economic Zones Act;
    • gains arising from trade in securities listed in any securities exchange operating in Kenya by any dealer licensed under the Capital Markets Act;
    • interest income generated from cash flows passed to the investor in the form of asset-backed securities; and
    • dividends paid by SEZ enterprises, developers or operators to non-residents.
  • Finance Bill 2020 introduces a variety of measures ranging from the introduction of a digital services tax, a minimum tax, non-deductibility of certain expenses when computing taxable income, to the provision of tax amnesty through a voluntary disclosure programme to be administered by the tax authorities. The Bill will apply from 1 January 2021.
  • Individual income tax rates have been revised.
  • VAT fuel rate increased from 8 to 14%
  • Concessionary income tax rates for certain companies have been repealed.
  • Withholding tax on dividends paid to non-residents have been increased from 10 to 15%.
  • Turnover tax provisions have been revised.

Lithuania

Key Measures:

  • The parliament has approved a draft bill on the extension of reporting deadlines for intermediaries or relevant taxpayers under Directive (EU) 2018/822 (DAC6) following the adoption of Council Directive (EU) 2020/876 in light of the ongoing COVID-19 pandemic
  • Reporting time framework
    • mainstream reporting (30-day period to report new cross-border arrangements)
    • historical reporting (reportable arrangements from 25 June 2018 to 30 June 2020)
    • periodic reporting on marketable arrangements
  • Reporting deadline
    • reporting period starts on 1 January 2021 instead of 1 July 2020
    • 28 February 2021 instead of 31 August 2020
    • first reporting by 30 April 2021 instead of recurrent reporting after every 3 months

Luxemborg 

Government Link:

The Government of Luxembourg

Link to article:

Luxembourg : New governmental financial aids

Key Measures:

  • Luxembourg government decided to set up a recovery and solidarity fund to support companies in the Horeca, tourism, culture, events and entertainment sectors, but also for in-store retailing.