COVID-19 Global Measures

07 July 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:

Government Actions and Measures

Tax Administration Communications

Decree 330/2020

Resolution 4691

Resolution 4692

Link to article:

Government Measures and Emergency Fund

COVID-19 Updates

Key Measures:

  • The tax authorities have suspended the initiation of collection lawsuits until 1 August 2020.
  • Tax authorities amended the instalment agreement regime as follows:
  • deadline for applying for the instalment agreement regime is now 1 August 2020.
  • first instalment is due on the 16th of the month following that on which the taxpayer submitted the application for the regime. However, for applications submitted by 31 May 2020, the first instalment is due on 16 July 2020.

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:

ATO - COVID-19

Coronavirus information and support for business

Supporting Australian Workers and Business

COVID-19 Tax FAQ

Link to article:

COVID-19 | News and updates (central resource updated as of 11 June 2020)

Webinar: Year-end tax planning ideas with a focus on COVID-19 considerations

COVID-19 drives optimism among mixed-bag M&A

Uncertainty over income tax treatments and interaction with transfer pricing

Expansion of the RTP schedule to include large private companies

The effect of corporate tax rate changes on year-end tax planning

Maintaining effective healthcare procurement practices throughout and beyond COVID-19

Year-end taxation and reporting for managed funds

The Export Markets Development Grant - government financial assistance program

Key Measures:

  • For annual reporting periods beginning on or after 1 January 2019, Australian Accounting Standards Board (AASB) Interpretation 23 requires that taxpayers account for tax uncertainties where it is not probable that the taxation authority will accept a particular tax position or treatment.
  • From 1 July 2020, contracts that were entered into before 1 July 2018 and which have not settled on or before 30 June 2020 will be subject to the GST withholding rules.
  • A Reportable Tax Position (RTP) schedule requires eligible taxpaying entities to disclose their most material and contestable tax positions to the ATO, which the ATO will use for future targeted reviews and audits. For income years starting on or after 1 July 2020 the RTP will be rolled out to private companies.
  • Due to COVID-19 Pandemic, the Government announces extension of instant asset write-off until 31 December 2020.

Austria

Government Link:

Austria COVID-19 Relief

COVID-19 Gesertz Bill Approved by Parliament (in local language)

Link to article:

COVID-19: VAT reduced to 5%

Study Covid-19: domestic economy cautiously optimistic

Saving taxes on the sale of company land

DAC 6 / EU-MPfG - Optional postponement of the registration deadline accepted by ECOFIN

2020 Economic Recovery Act: Depreciation

Loss carry back in the ESt and KöSt

COVID-19: Federal Government Tax Reform Measures

COVID-19: The methods of booking public grants

Covid-19 eligibility until July 17. check online!

Key Measures:

  • Government agrees on an Economic Stimulus Package of EUR 19 billion aimed at mitigating the impact of the COVID-19 pandemic. The key elements are:
  • a temporary application of a reduced VAT rate of 5% in the gastronomy, culture and publishing sectors during the period between 1 July and 31 December 2020;
  • lowering of the individual income tax rate for the lowest tax bracket for income between EUR 11,000 and EUR 18,000 from the current 25% to 20%;
  • payment of a one-time child bonus of EUR 360 per child which is entitled to monthly child benefit;
  • introduction of the declining balance method, with a maximum depreciation of 30% in the first year;
  • introduction of a loss carry-back facility with the possibility to set off losses incurred in 2020 against profits incurred in 2018 and 2019; and
  • Bill on Aid Package for the catering industry enters into force. The most important tax measure included is the application of the reduced 10% VAT rate to the sale of non-alcoholic beverages in taverns until the end of 2020.

Belgium

Government Link:

Official Information and Services

Ministry of Finance Updates

Link to article:

The corona crisis: support measures and recovery measures

No corona deferral for May 2020 VAT returns

Investment deduction for tax year 2021 published

Corona losses in 2020 charged to fiscal year 2019 and tax-free reserve for an amount equal to the corona losses of 2020

Key Measures:

  • Belgian parliament adopts Bill on extended loss-carry-back possibilities and a reconstruction reserve for companies and entrepreneurs subject to personal income tax.
  • Income Tax payment deadlines for non-resident individuals clarified.
  • Belgium extends payment deadline for excise duties, packaging levy on alcohol and non-alcoholic beverages and import VAT until 31 December 2020.
  • VAT filing deadlines for 2020 summer holiday period extended as follows:
  • monthly VAT filing for June 2020: from 20 July 2020 to 10 August 2020;
  • second quarter returns: from 20 July 2020 to 10 August 2020; and
  • monthly VAT filing for July 2020: from 20 August 2020 to 10 September 2020.
  • Taxable persons entitled to a VAT refund must respect the following deadlines:
  • VAT returns for June 2020: 24 July 2020; and
  • VAT returns for July 2020: 24 August 2020.
  • The filing deadlines for the intra-Community supply listings are extended as follows:
  • monthly listing for June 2020: from 20 July 2020 to 10 August 2020;
  • second quarter listing: from 20 July 2020 to 10 August 2020; and
  • monthly listing for July 2020: from 20 August 2020 to 10 September 2020.
  • In the case of late payment, a monthly penalty interest of 0.8% will be imposed. However, no penalty interest will be imposed if the VAT amount due does not exceed EUR 125,000.
  • A refund of excise duty on unsellable tank beer which was put into use between 1 January 2020 until 30 June 2020 can be claimed.
  • Production costs and donations of medical materials useful in the fight against COVID-19 are tax deductible until 1 September 2020.
  • Subsidies granted by the communities and regions granted to businesses, self-employed persons and natural persons from 15 March 2020 until 31 December 2020 in the context of the COVID-19 pandemic are exempt from income tax.
  • The calculation of the CIT increase due if no or insufficient advance payments of income tax will be adjusted for the third and fourth quarter of 2020 if the taxable period ends between 30 September and 31 January 2021, with certain exceptions.
  • The investment deadlines under the Tax Shelter for the film industry for production companies that can demonstrate that they have suffered direct damage from the measures imposed by the government in the fight against the COVID-19 pandemic are extended by 12 months.

Bolivia

Government Link:

Normative Resolution

Key Measures:

  • The National Tax Service (SIN) announced the abrogation of the new electronic invoicing system, of which, the implementation was scheduled for 1 June 2020

Brazil

Link to article:

Delay of upcoming federal tax payments for 6 months, plus certain exemptions for listed medical supplies required to help fight Covid-19

Link to article:

Baker Tilly proposes alternative for cash generation in times of crisis

6 tax changes caused during the pandemic

Key Measures:

  • Tax authorities reduce by 50% the industrialization and exportation thresholds for the period ending between 1 May 2020 and 30 April 2021 for the purpose of enjoying of the benefits of special regimes. In addition, the period of validity of the regimes is extended in 1 year.
  • Implementation of new modality of tax regularization, "Exceptional Negotiation" (Transação Excepcional), under which special conditions for the payment of federal tax debts are offered.
  • Ministry of Economy postpones the deadline for payment of social security contributions (INSS, PIS COFINS) from June 2020 until November 2020.
  • The government has extended, for 6 months, the deadline for payment of federal taxes under the Simples Nacional, for the periods of March, April and May.
  • Postponement and instalment payment of the deposit of the Guarantee Fund for Length of Service (FGTS), all employers, including the domestic worker employer.

Bulgaria

Government Link:

Ministry of Finance – Tax Policy

Link to article:

Reduced 9% VAT rate for certain goods and services in Bulgaria

Key Measures:

  • Reduced 9% VAT rate for books and restaurant services in force from 1 July to 31 December 2020.
  • The Common Reporting Standard (CRS) reporting deadline for financial institutions for the taxable period 2019 has been extended from 30 June 2020 to 30 September 2020.

Canada

Government Link:

Department of Finance Canada

Employment and Social Development Plan

Canada’s COVID-19 Economic Response Plan

Link to article:

Further expansion of the CEBA – applications open June 19

BT Windsor launches Baker Tilly Live

Key Measures:

  • Tax Authorities Publish Guidance on International Income Tax Issues Raised.

Chile

Government Link:

Official COVID-19 Government Action Plan and Announcements (in local language)

Tax Relief News and Incentives (in local language)

Link to article:

Economic Measures of Support (in local language)

Key Measures:

  • Ministry of Finance announces the following tax and financial emergency measures:
    • a 50% reduction of the corporate income tax rate applicable to small and medium-sized companies effective for 2020, 2021 and 2022;
    • tax incentives such as suspension of provisional corporate income tax payments, VAT refunds under certain conditions and automatic full depreciation of assets;
    • additional fiscal expenses of approximately USD 12 million in the coming 24 months, including expenses with direct investment by the state the transfer of funds to low-income individuals and families, and new benefits to promote private investments;
    • the introduction of emergency family income to help those who are prevented from working due to restrictions on mobility imposed by the state;
    • incentives for the hiring of workers, which include the possibility to cover part of their salaries; and
    • incentives for the reactivation of small and medium-sized companies, including interest-free or low-interest loans, debt instruments guaranteed by the state and the economic rescue of strategic companies.

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:

Government News

Tax Administration News

Official Decree 401 of March 13th 2020

AR 42 and its technical annex.

Link to article:

Postponement of Predial, ICA and ReteICA - Bogotá (in local language)

Key Measures:

  • The period of stay in Colombia by individuals unable to leave the country due to COVID-19 travel restrictions will be taken into account for the purposes of the 183-day residence criterion.
  • 0% Import Duty for Medical, Cleaning and Hygiene Products.
  • Government authorizes territorial entities to grant tax reliefs on municipal and other territorial taxes.
  • The Ministry of Finance and Public Credit has reduced the 2020 advance income tax rates to 25% or 0% (from the general 75% of the net amount of income tax assessed in the return or the average of the income tax for the last 2 years) for certain economic sectors affected by the COVID-19 pandemic.
  • To mitigate the economic effects of COVID-19, the government introduced the following VAT exemptions, and other benefits through Legislative Decree No. 682:
  • the on-site or electronic sale of a maximum of three items of either clothing, appliances, sport items, toys and games or school supplies, is not subject to VAT on 19 June, 3 July and 19 July 2020. To avail of this condition, the payment must be made using electronic mechanisms;
  • Leases of immovable property for commercial purpose accrued and invoiced after the Decree enters into force will not be subject to VAT from the application of the Decree and until 31 July 2020, provided the real estate had to be closed totally or partially for more than 2 weeks. This benefit is not applicable for office buildings or warehouses; and
  • the consumption tax rate for restaurants, cafeterias and similar food and beverage services is reduced from 8% to 0% until 31 December 2020.

Costa Rica 

Government Link:

Presidential communication (in local language)

Tax Relief Law (in local language)

Bill 21963

A bill has been approved which covers support in relation to the payment of income tax, VAT and Customs Duties.

Key Measures:

  • Temporary VAT exemption for small and medium enterprises (SMEs) on their consumption of water, electricity and rent. This exemption would be for a term of 1 year, since the moment that the Executive declared a national emergency state, according to the National Emergencies Law.

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:

  • Companies and citizens affected by the coronavirus crisis can delay paying certain taxes such as income tax, corporation tax, VAT, and social security contributions. The payment can be postponed for three months, with the possibility of an extension to another three months. After that, a 24-month interest-free payment in instalments is granted.
  • All entrepreneurs who can demonstrate a 20% drop in sales can apply for a deferral if the sales tax liability arises from invoices issued or received but not yet paid.
  • The tax authorities can reduce the corporation tax prepayments or fix them at HRK 0.00 for certain groups of taxpayers who have ceased to operate or have continued to operate to a limited extent due to special circumstances. This can be done in two ways: ex officio or on request.

Cyprus

Government Link:

Ministry of Finance (in local language)

Link to article:

Tax Alert: Cyprus - Tax Regulations (in local language)

Tax Alert – Introduction Of The Provisions Of The EU Anti-Tax Avoidance Directive In Cyprus

New Supportive Measures for the economy in anticipation of the consequences of COVID-19

Extension of Submission of Individual Income Declaration For the Year 2019 And Payment of Due Tax

Tax Alert – Amendments To The Notional Interest Deduction (NID) Rules

Key Measures:

  • The Tax Department announced the extension of the deadline for the submission of the electronic Income Tax Return for the year 2019 by employees and pensioners (Form T.D.1 employee) and by self-employed individuals whose turnover does not exceed the amount of €70.000 (Form T.D.1 self-employed), as well as the payment of the tax due, until 30 October 2020.
  • PanEuropean Guarantee Fund amounting to € 32.5m in the form of guarantees
  • Scheme For Providing Government Guarantees To The European Investment Bank For Granting Loans To Cypriot Small And Medium Companies And Enterprises Of Medium Capitalization
  • Liquidity amounting to €800m for funding of SMCs through the Cyprus Entrepreneurship Fund (CEF)
  • Interest Subsidy Scheme for new business loans
  • Interest Subsidy Scheme for new housing loans
  • Subsidization of very small and small enterprises and self-employed
  • Immediate promotion of matured development projects
  • Incentives Scheme for airline companies with the aim of strengthening the connectibility of Cyprus and supporting the tourism sector, amounting to €6.3m
  • Co-promotional program with the tourist agents for the attraction of tourists and projection of Cyprus as a safe destination, amounting to €10m
  • Reduction of the VAT rates from 9% to 5% for the period 1/7/2020 until 10/01/2021 in the sectors of tourists accommodation and catering
  • Extension of deadline for the submission of income tax statements by salaried persons
  • Deletion of encumbrances
  • Extension of deadlines for the submission of documentation concerning the ESTIA Scheme and possibility of submitting new application.

Czech Republic 

Government Link:

Government of Czech Republic Coronavirus

Link to article:

Postponement of the deadline for approval of financial statements and COVID III guarantee program for entities with a maximum of 500 employees

Key Measures:

  • The Social Security Insurance Law was amended to temporarily waive social security contributions for qualifying employers in response to the COVID-19 crisis.
  • Reporting deadlines under DAC6 will be extended to 2021.
  • Social Security Contributions for employers with 50 employees or less  will be waived in the months of June, July and August 2020, under certain conditions.
  • Parliament approves Anti-Crisis Tax Bill, which includes:
  • Corporate and individual income taxpayers recording a tax loss in 2020 would be able to claim a carry-back of the loss and reduce their 2019 and 2018 tax base. The loss carry-back provision applies in respect of tax years ending on 30 June 2020 or later.
  • Accommodation services, sports and cultural activities will be subject to the reduced 10% VAT rate (currently, 15%).
  • No late penalty and late payment interest will apply to CIT and individual tax returns filed by 18 August 2020, i.e. within 3 months of the end of the state of emergency. The measure does not apply to taxpayers registered with the Specialized Tax Office (i.e. large taxpayers).
  • VAT waiver extended until 31 July 2020 in respect of certain gratuitous supplies in connection with the COVID-19 pandemic.
  • No late penalty and late payment interest will apply for the late filing of real estate acquisition tax returns, as long as the returns are filed by 31 December 2020 (initially, 31 August 2020).

Denmark

Government Link:

Coronavirus / covid-19 in Denmark

Link to article:

Overview of COVID-19 deadlines

Increased deduction for R&D in 2020 and 2021

Control signal on sale of demolition property

Extension of payment deadlines for A-tax, AM contributions and VAT

New duties for companies and advisers' reporting of "aggressive" cross-border transactions

Temporary measures meet specific tax challenges for residence, work or salary

Key Measures:

  • A sale of a built-up property would have to be done with the addition of VAT if the buyer intended to demolish the buildings to construct new construction.
  • In view of the liquidity of the business sector, it has now been agreed that payment deadlines for A-tax, AM contributions and VAT for August - October 2020 will also be extended.
  • In light of EU rules, it is now mandatory for individuals, businesses and their advisers to notify the tax authorities of international transactions that could potentially be considered an "aggressive" use of tax rules.
  • Full tax liability for persons residing abroad.

Dominican Republic

Government Link: 

Notice 36-2020 (in local language)

Notice 37-2020 (in local language)

Dominican Tax Measures during COVID-19

Key Measures:

  • The tax authorities have extended the deadlines from 29 June 2020 to 29 July 2020 for several 2019 filings and related remittances.
  • Previously introduced emergency tax measures are extended until 1 July 2020.

Ecuador

Link to article:    

Coronavirus Ecuador - Tax matters and business support (central resource)

Update on Official Decree 1021 Executive Branch

Key Measures:

  • Establishment of a contribution levied on income derived by companies. A rate of 5% would apply on taxable income derived by companies in 2019. The contribution would be paid in six instalments.
  • Establishment of a contribution levied on income derived by individuals. A progressive rate of up to 36% would apply on income derived by individuals in 2020.
  • Establishment of a solidarity contribution levied on real estate. The applicable rate would be 2% on the cadastral value of the property in 2020. Taxpayers would be real estate owners (companies and individuals)
  • Income tax advance payments made spontaneously by taxpayers would generate interest from the date on which the payment is made to the deadline for payment of income tax for 2020
  • Expenses incurred for tourism activities would be deductible for purposes of individual income tax during fiscal years 2020 and 2021.

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:

Government of the French Republic COVID-19

Guidelines on Emergency Measures

Ruling Answer BOI-RES-000068-20200407 (in local language)

Link to article:

 

Coronavirus (COVID-19): a recovery plan for local businesses, artisans and the self-employed

2020 income tax return: what next?

Coronavirus (COVID-19) and partial unemployment: what reimbursement?

Coronavirus (COVID-19) and Solidarity Fund: tax and social security exemption?

Unsold gifts: associations, you have a role to play!

Tax on offices in Île-de-France: check the administration's calculation!

VAT: 2 services = 2 VAT rates?

Energy transition and tax benefit: are you qualified?

Coronavirus (COVID-19): a learning stimulus plan

Coronavirus (COVID-19): lifting of traffic bans in the European Union

Coronavirus (COVID-19): evolution of the health protocol for the French overseas departments

Coronavirus (COVID-19): support measures for CHR, tourism, events, sport and culture

Coronavirus (COVID-19): measures to support companies' cash flow

Featured News - Coronavirus  (central resource in local language) (updated as of 16 June 2020)

Key Measures:

  • DAC 6 reporting deadlines extended for 6 months.
  • The tax authorities have extended the deadline for filing the annual trust declaration (Form no. 2181-TRUST2) from 15 June 2020 to 30 September 2020.

Germany

Government Link:

Federal Office of Economy COVID-19 Updates

COVID-19 Social programs

European Commission approves umbrella aid

Link to article:

Tax Alert on the Corona stimulus package: Update on the short-term reduction in sales tax rates

Corona Tax Update: Federal and state tax breaks

Strategy Beyond COVID-19: Why zero-based budgeting is now the right decision for the upcoming planning process

Corporate management makes compliance management structures essential (in local language)

Corona Emergency Aid Act: Doubling the research allowance (in local language)

Worldwide survey: digitization leads to a new direction in tax management (in local language)

News and Updates around the Corona Crisis (central resource in local language)

Implementation of the Corona stimulus package - probably the one who has clear processes in the tax function

Corona Update: Tax relief from the federal and state governments (as of 15 June 2020 in local language) 

Corona economic stimulus package: employers must take this into account

Greece

Government Link:

Public Revenue Authority News

Tax Residence during COVID-19 (in local language)

Circular E.2056.

Press release re Tax advance payments (in local language)

Press release re payment deferrals (in local language)

Link to article:

Measures to address the ongoing consequences of the COVID-19 corona pandemic (in local language)

Key Measures:

  • Government announces the reduction of the advance tax payment for 2021 and the suspension of payment of certain tax liabilities that were due in June.
  • New amendments to late interest rates and options to pay in instalments, as follows:
  • introduction of 12 interest-free instalments or 24 instalments with a low interest rate for all tax debts, of individuals and legal persons, that have been suspended from March 2020 to September 2020;
  • payment of Uniform Tax on Ownership of Real Estate Property (ENFIA) in six monthly instalments (instead of five, which is currently provided);
  • payment of personal and corporate income tax in eight monthly instalments (instead of six, which is currently applicable); and
  • Greek Government provides for a second round of the Repayable State Cash advance measure.
  • The deadline for the payment of certified tax liabilities that expired on 31 May 2020 until 15 June 2020 for persons that wish to benefit from the 25% discount on their certified tax liabilities. Persons that do not wish to benefit from the 25% discount on their certified tax liabilities for May 2020 can pay them by 30 September 2020. The extension also refers to instalments for tax liabilities (including VAT and WHT).

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:

Official COVID-19 Website President Press Release

Presidential Press Release

Decree 33-2020 (in local language)

Key Measures:

  • Income tax return deadline is extended until June 30th (except for major / large taxpayers)
  • Payments must be made when filing the return. However, if payment is made 30 April instead of 30 June, there will be an 8.5% discount (except for large taxpayers)
  • Purchases and imports of essential goods related to COVID-19 (masks, medicine sanitizing gel) are exempt of customs tariffs and VAT

Hong Kong

Government Link:

Government of Hong Kong announces second round of $137.5 billion Anti-epidemic Fund measures

Government of Hong Kong - Relieve Burden

Inland Revenue Department - 2020-21 Budget

Concessionary Measures

Government of Hong Kong - Anti-epidemic Fund

Link to article:

Hong Kong - Second round Anti-epidemic Fund measures

Hong Kong Budget 2020/21

Key Measures:

  • The Inland Revenue Department has announced the implementation of profits tax and salaries tax exemption for Anti-epidemic Fund provided to businesses or individuals from the year of assessment 2019/2020. This move will enable businesses and individuals to fully benefit from the financial assistance under the Anti-epidemic Fund.

Hungary

Link to article:

Covid-19-virus relief measures

Key Measures:

  • Hungary broadens the scope of the Online Invoice Reporting System. Usually, a special sanction applied to failure to report invoice data, or to inaccurate invoice data reporting. However, due to the COVID-19 pandemic, the NTCA has announced a 3-month sanction-free transitional period if taxable persons fail to observe the reporting obligations applicable as from 1 July 2020.

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:

Indian Government – All information on coronavirus

Link to article:

Reduction in rate of Tax Deduction at Source(TDS) & Tax Collection at Source(TCS)

Key Measures:

  • The extended due date for filing the income tax return for financial year FY 2018-19 is 31 July 2020.
  • The extended due date for filing income tax returns for FY 2019-20 is 30 November 2020. Consequently, the extended due date for filing a tax audit report is 31 October 2020.
  • The extended date for furnishing the statements of deduction of tax at source (TDS)/collection of tax at source (TCS) for the month of February or March 2020, or for the quarter ended 31 March 2020 is 31 July 2020. The extended date of issuance of TDS / TCS certificates for FY 2019-20 is 15 August 2020.
  • The extended deadline of making investments/purchases for the purpose of claiming benefits for capital gains under the provisions of section 54 and section 54GB of the Act is 30 September 2020.
  • The extended deadline of making various payments/investments for the deduction under chapter VIA-B of the Act, including sections 80C (contributions to life insurance, provident fund, subscription to certain equity shares), 80D (health insurance) and 80G (donations to certain funds and charitable institutions), is 31 July 2020.
  • The extended date for commencement of operation for the Special Economic Zones units for claiming deduction under section 10AA of the Act is 30 September 2020 for the units that received approval by 31 March 2020.
  • Under the "Vivad Se Vishwas" Scheme, the extended deadlines for the completion of or compliance with actions is 30 December 2020; the end date for making the said completion or compliance is 31 December 2020.
  • The extended deadline for the payment of self-assessment tax for small and medium-sized taxpayers with tax liabilities of up to INR 100,000 is 30 November 2020
  • The extended deadline for the Aadhar – PAN linking date is 31 March 2021.
  • The extended deadlines for implementation of new procedures under sections 10(23C), 12AA, 35 and 80G of the Act is 1 October 2020.
  • The reduced interest rate of 9% for late payment of taxes, levies, etc. will not be applicable after 30 June 2020

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:

COVID-19 (Coronavirus)

Link to article:

COVID-19 Key support measures available to business (central resource)

Key Measures:

  • DAC 6 reporting deadlines extended again until 2021.
  • Deferral of deadline for the filing of DAC2/CRS, FATCA and DAC6 returns until 30 September 2020.
  • Revenue have updated the tax and duty manual on income from scholarships to include comments on temporary measures for non-resident students during the COVID-19 pandemic.

Israel 

Government Link:

Additional Steps to Assist Businesses and the Self-Employed: Easing of a Series of Regulatory Restrictions

Corona Crisis- Tax authority updates

Link to article:

Clarification regarding VAT Payment Dates (in local language)

Postponing the date of applying for a grant for salaried employees in a few companies (in local language)

Government Assistance Program for Corona Virus Affected Businesses (in local language)

Stop Social Security Payment for Workers Who Are Abroad (in local language)

Second beat for self-help grant due to the spread of corona virus (in local language)

Submitting grant applications for employees with control of few companies for the Corona period (in local language)

Key Measures:

  • The Treasury Department eased the conditions for granting an independent aid grant due to the spread of the Corona virus, in order to expand the scope of aid to small and medium businesses and the self-employed population whose income declined significantly during this period.
  • Grants will be awarded to businesses amounting to NIS 6 billion
  • Sharp reduction in business tax rate at 25% annual rate: Targeted reduction in affected industries, under which businesses will enjoy a three-month free municipal tax (March-May). The reduction will be funded by the government and local government
  • The period between 22 March 2020 and 31 May 2020 will not be counted as calendar days when determining the tax-related deadlines.

Italy 

Government Link:

Measures taken by the government Italian Ministry of Finance

Link to article:

Main Italian tax measures of the Law Decree 19 May 2020

Key Measures:

  • The deadline for payments of tax due resulting from relevant income tax returns, regional tax on productive activities (IRAP) returns and value added tax (VAT) returns has been extended from 30 June 2020 to 20 July 2020 for certain taxpayers. A 0.4% interest will then apply to late payments made between 21 July 2020 and 20 August 2020.
  • European Commission approves Italian tax schemes to support affected companies and self-Employed Individuals. The support will take the form of:
    • a partial waiver of the regional tax on productive activities (imposta regionale sulle attività produttive, IRAP) for companies and self-employed individuals with revenues not exceeding EUR 250 million in fiscal year 2019, with some exceptions, e.g. banks and other financial institutions
    • an exempt from the municipal tax on immovable property (imposta municipale propria, IMU) in relation to touristic properties used for commercial operations, including SPAs and sea resorts
    • tax credits to support the adaptation of production processes and work places to the new sanitary requirements
  • tax credits for certain companies and self-employed individuals, depending on the level of revenues, in relation to rents and leases for non-residential properties and business leases for the period between March and June 2020.
  • Qualifying enterprises operating in the hotel sector may elect to step up certain business assets and participations, except immovable properties held by qualifying real estate companies, included in the balance sheet of the accounting period ongoing on 31 December 2019, by paying a 10% substitute tax. The substitute tax may be paid in three equal annual instalments, for amounts up to EUR 3 million, or six equal annual instalments, for amounts exceeding EUR 3 million.
  • Input VAT paid on acquisitions of goods subsequently donated to support the containment and management of the COVID-19 pandemic is deductible.

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

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.

Luxemborg 

Government Link:

COVID-19 circulars to municipalities and similar entities (in local language)</