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

Country-by-country comparison

Value Added Tax

  • None

Reduce the reduced VAT rate to 8% (currently, 12%) with effect from 1 April 2020 for the following:

  • the supply of passenger transport and the procurement of such services;
  • public broadcasting companies;
  • admission to cinemas, sports events, amusement parks and museums; and
  • accommodation in hotels, the letting of cabins and holiday apartments by hotels and camping businesses and the procurement of hotel accommodation.

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.)
  • Individuals who own a company engaged in active business are subject to net worth tax on their business assets. If the company is incurring a loss in 2020, the individual may defer the payment of the tax due in 2021 by one year. This is expected to increase the liquidity of businesses as owners usually finance the payment of tax by paying dividends.

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
  • N/A

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
  • Loss-making companies may carry back losses and set them off against profits of previous tax years. This measure is limited to limited liability companies that incur a loss in 2020 and have profits from 2018 or 2019.

Additional comments

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