CMS Expert Guide to the law and regulation of Covid-19 tax relief

Country-by-country comparison

Value Added Tax

  • None
  • 60-day VAT exemption starting from April 15, 2020 upon importation of goods that are necessary to prevent the spread of COVID-19. The measure covers the goods listed in decree No. 333 of April 1, 2020 (notably protective masks, disinfectants, respiratory devices)

Corporate Income Tax

  • 2 months deferral of deadline for submission of Corporate tax return for 2 months (until 31 May 2020)
  • simpler procedure when asking for deferral of tax obligations, if the taxpayer is impacted by Coronavirus regulations (e.g. mandatory closure, quarantine etc.)
  • N/A

Social Security Contributions or Payroll Tax

  • 24 months deferral of April, May and July social security contribution payments for self-employed persons,
  • partial refund of salaries for employees, who cannot work due to Coronavirus restrictions (e.g. substantial lack of business, mandatory closure, medical quarantine etc.
  • deferral of social security contributions payment in now also possible
  • Temporary 95 % reduction of social security contributions on salaries paid by employers that provide healthcare-related services applicable for a 90-day period starting March 21, 2020
  • Measures benefitting to employers facing difficulties (among the alternative requirements to be satisfied: activity critically affected by the lockdown, significant percentage of employees who cannot provide services, substantial reduction in sales after March 20, 2020):
    • Postponement of the payment of social security contributions; or
    • Temporary 95 % reduction of social security contributions (only for employers with up to 60 employees as of February 29, 2020)
    • Applications to be filed until April 15, 2020

Other relief measures

  • 2 months deferral of deadline for submission of annual financial statements (until 31 May 2020)
  • all tax inspections and reviews are temporarily halted
  • judicial and administrative deadlines stop running until 30 July 2020
  • 12 months loan repayment deferral for businesses subject to mandatory closure during quarantine period
  • Temporary reduction of the tax on bank credits and debits to 0.25 % (instead of 0.6%) and 0.5 % (instead of 1.2%) on checking accounts and other operations carried out by employers that provide healthcare-related services for a 90-day period starting March 21, 2020
  • Extension of legal terms of ongoing inspections, assessments, appeals, reimbursements and other procedures in connection with tax, social security and custom duties matters between March 18, 2020 and April 26, 2020
  • No new tax audit to be initiated during the lockdown period
  • Suspension of collection measures enforced by tax authorities (e.g. seizure of goods) in respect of debts of micro, small and medium-sized enterprises between March 20, 2020 and April 30, 2020
  • Extension of the deadlines to file the transfer pricing annual tax return and related documentation related to fiscal years closed between December 31, 2018 and September 30, 2019, up to May 18, 2020 or May 22, 2020 (depending on the taxpayer's tax identification number)
  • Extension until April 30, 2020 of the deadline to repatriate 5% of foreign assets for purposes of being subject to the 1.25% Personnel Assets Tax (instead of the aggravated 2.25% rate)
  • Extension until June 30, 2020 of the deadline to benefit from the regularization regime that provides for facilitated payments on tax, social security and customs duty debts
  • Extension until April 30, 2020 of the deadline for employers to file forms 572 related to the 2019 fiscal year
  • Extension to May 29, 2020 of the deadline for employers to provide the final tax determination for each employee related to the 2019 fiscal year

Additional comments

  • Additional measures are planned to be introduced by 10 April 2020.
  • One-time cash subsidy made available to certain individuals classified in the lowest two tiers of the small and medium business taxpayer regime