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

Country-by-country comparison

Value Added Tax

  • None

All businesses can apply for:

  • An extended payment plan for VAT debt
  • An exemption from interest on late payments of VAT
  • Waiver of fines for non-payment of VAT

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.)

All businesses can apply for:

  • An extended payment plan for CIT debt
  • An exemption from interest on late payments of CIT
  • Waiver of fines for non-payment of CIT

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
  • Extended payment plan, exemption from interest on late payments, waiver of fines for non-payment of payroll tax
  • Extension of deadline for social security contributions

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
  • Automatic extension of payment term by two months for the payment of payroll tax, VAT, personal income tax, CIT, non-resident tax and legal entities tax due for March 2020/Q1 2020.
  • Automatic extension of payment term by two months for payroll tax and VAT due for April 2020.
    • Payroll tax payment deadline: 15 July 2020;
    • VAT payment deadline: 20 July 2020.
  • Automatic extension of deadline for submission of corporate income tax return, legal entities tax return or a non-resident tax return due between 16 March and 30 April 2020. New deadline for submission is 30 April 2020.
  • Automatic extension of deadline for submission of VAT returns:
    • VAT returns for February 2020: deadline extended to 6 April 2020;
    • VAT returns for March 2020: deadline extended to 7 May 2020;
    • VAT returns for April 2020: deadline extended to 5 June 2020;
    • VAT returns for the first quarter of 2020: deadline extended to 7 May 2020.

Additional comments

  • Additional measures are planned to be introduced by 10 April 2020.

The possibility of obtaining an extended payment plan, exemption from interest on late payments, waiver of fines for non-payment of tax exists for:

  • VAT
  • CIT
  • personal income tax
  • payroll tax and 
  • legal entities tax

The tax measures are available to all registered businesses that can demonstrate an impact of Coronavirus.

Deadline for application is 30 June 2020.