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

Country-by-country comparison

Value Added Tax

  • None
  • The deadline for remittance of VAT for the March, April and May 2020 periods is being postponed by 30 days.

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.)
  • The next instalment payment of corporate income tax is due on 20 March 2020. This prepayment is based on expected profits earned in 2020. If a business is impacted by the spread of COVID-19, it is possible to reduce expected profits for 2020 and consequently reduce the preliminary payment of tax.

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
  • Paye payments due in April, May and June 2020, the deadline for remitting the tax is being postponed by four months.

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
  • Withholding taxes for employees are extended.

Additional comments

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