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

Country-by-country comparison

Value Added Tax

  • None
  • Council of Ministers have adopted a Decision on indirect tax exemptions and tax refund of already paid indirect taxes on equipment and resources donated by domestic and international entities for prevention and suppression of COVID-19. This is related to masks, gloves, disinfectants, medical protection suits, ventilators and similar.

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.)
  • Both FBiH and RS tax authorities have extended deadlines for submission of annual tax returns. In FBiH, a new deadline is set to April 30, 2020, while RS has extended its deadline to June 30, 2020. In RS all payments can be made in installments.

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
  • In FBiH – annual tax returns submission deadline is extended to April 30, 2020. Deadline for monthly payrol and social contributions returns for March are extended to April 30, 2020, while a new deadline for April, 2020 returns is May 31, 2020.
  • In RS – submission of annual PIT returns deadline is prolonged to June 30, 2020. Same is applicable to other taxes that will be due for payment on March 31, 2020. All payments can be made in installments.

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
  • In both FBiH and RS Deadlines for submission of other direct taxes returns are extended mostly for one month.
  • In FBiH, all tax returns and other registration data forms are to be sent by post, e-mail or fax.
  • Per decisions of the banking agencies moratoriums and/or grace periods for loans is possible.

Additional comments

  • Additional measures are planned to be introduced by 10 April 2020.
  • Numerous decisions which support or limit certain activities are adopted depending on the type of business.
  • Certain business incentives are planned.