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

Country-by-country comparison

Value Added Tax

  • None
  • VAT reductions (from 10% to a varying range of lower rates) for SMEs.

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.)
  • Corporate and individual income tax reductions for SMEs in designated areas affected most serious by Corona.

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
  • Reduction in corporate/individual income tax for landlords offering a reduction on rent payments to SME lessees, in the amount proportional to the reduced rent.
  • In order to boost the spending, (i) a 70% reduction of the special consumption tax for automobile purchase, (ii) doubling the deduction rate for credit card spendings and (iii) an increase of the deduction cap for business entertainment expenses.
  • local governments are also offering/considering a form of local tax reductions (e.g., property tax, etc.).

Additional comments

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