Clarkson Hyde Global Summary of Interntational Measures
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Clarkson Hyde Global Summary of Interntational Measures
AUSTRALIA
Cash flow Boost
The Government is providing tax-free cash flow boosts of between $20,000 and $100,000 to eligible
businesses (for businesses with an annual turnover of under $50 Million and employing staff).
Employers will receive a payment equal to 100 per cent of their PAYG tax withheld, with the maximum
payment of $100,000.
This will automatically be paid as credits in the ATO activity statement system, after you lodge activity
statements (from lodgement of 31 March 2020- Quarterly/Monthly statements).
In the event the business’s ATO account has a credit balance, this will be refunded by the Australian
Taxation Office within 14 days.
JobKeeper Payment
Under the JobKeeper Payment, businesses impacted by the coronavirus will be able to access a subsidy
to continue paying their employees. The Government will provide a fortnightly payment of $1,500 per
eligible employee until September 2020.
Employers will need to pay eligible employees* a minimum of $1,500 (before tax) per fortnight to
claim the JobKeeper payment. This will be paid to the employer in arrears each month.
JobKeeper payments can be made for the period beginning 30 March 2020. However, the payments
to eligible employers will commence in the first week of May 2020.
Eligible employers are those with an annual turnover of less than $1 billion who have assessed that
they have had a revenue reduction of 30% or more.
Sole traders, business owners and some other entities (such as partnerships, trusts or companies) may
be entitled to the JobKeeper Payment scheme under the business participation entitlement.
There are additional requirements for employers with a turnover of over $1 billion.
* Eligible employees are full time, permanent part-time and casual employees (if they were employed
as a casual for over 12 months) as at 1 March 2020. The commencement of this was 30 March 2020.
Increase in the instant asset write off
From 12 March 2020 until 30 June 2020 the instant asset write-off:
• threshold is $150,000 (up from $30,000); and
• eligibility range covers businesses with an aggregated turnover of less than $500 million (up
from $50 million).
Federal - Business Loans
• The Federal government has also announced they will be guarantee up to 50% of the new
business loans issued for entities with turnover of up to $50M.
Other Measures
The ATO has provided the following options as possible ways to obtain tax relief.
• The ATO may allow payments for income tax, GST, PAYG instalments, FBT and excise to be
deferred – for up to six months.
• Taxpayers can vary their quarterly PAYG instalment for the March 2020 quarter. The ATO
has indicated it will not apply penalties or charge interest to varied instalments for the 2020
income year.
• The ATO may remit interest and penalties incurred after 23 January 2020.
• The ATO may be prepared to enter into ‘low interest’ payment plans.
If you have any questions regarding this or any of the other initiatives offered to those affected by
the current disruption, please contact Frank Allen at fsallen@allensint.com.au.
BANGLADESH
To protect outbreak of COVID 19, Bangladesh government has repeatedly been asking people to
stay home in efforts to contain the spread of the novel corona-virus. It also announced closure of
all public and private offices, School, College, courts to make people stay indoors.
Government taken the following decisions:
1. Educational institutions has been closed down from March 17, 2020 to May 15, 2020 and may
be increased up to June end 2020
2. All government, non-government office and autonomous bodies has been suspended and will
be under general leave from March 26, 2020 to May 15, 2020 and may be increased up to June
end 2020.
3. Public transport like all passenger trains, launches and domestic flights has been suspended
from March 25, 2020 to May 15, 2020 and may be increased up to June end 2020, freight trains,
cargo vessels, trucks and Lorries carrying goods, medicine, fuel and perishable items will,
however, operate as usual.
4. Banking services has been turn down to 10am to 2.00pm,
5. Courts and legal offices has been suspended from March 29, 2020 to May 10, 2020 and from
May 11, 2020 virtual court has been set upped.
6. Bangladesh government has declared Financial Stimulus Packages for COVID-19 Response
(Contact Mohammad Abu Kawsar for further info: mdkawsar1974@gmail.com).
Government declared aforesaid office suspension will be considered as general leave and
employees of respective institutions will be eligible to get salary and allowances as normal
procedure.
On the other hand we are the registered member of The Institute of Chartered Accountants of
Bangladesh (ICAB). For audit and assurance services ICAB has been developed a check list to
consider during audit to assess risk and to minimize audit risk at reasonable label (Contact
Mohammad Abu Kawsar for further info: mdkawsar1974@gmail.com).
In Bangladesh for different goods and services has three VAT rates like 15% ,10% and 7.5%.
Tax rats are:
For resident Individual 10% to 30%
For non-resident Individual 30%
List Company 25%
Non-listed Company 35%
Cooperative Society 15%
Mobile operator & Tobacco company 45% Listed Bank, Insurance & NBFIs 37.50% Non-Listed Bank, Insurance & NBFIs 40% Surcharges for exceeding net wealth Taka 50 million 10% 30% If you have any questions regarding this or any of the other initiatives offered to those affected by the current disruption, please contact Mohammad Abu Kawsar at mdkawsar1974@gmail.com.
BELGIUM
Direct Tax
- Deferral of tax payments (extend payment date) & deferral of prepayments
Wage withholding taX
February 13 May 2020
March 15 June 2020
April 15 July 2020
Quarterly return 15 June 2020
- Flexibility on recording a bad debt reserve
- Flexibility on the application of the grandfathering clause under the new interest limitation
rule
- Tax audits postponed
- Period to incur expenses for tax shelter postponed
VAT
- Filing deadline extended
- reduced 6% VAT (instead of 21%) on the supply, intra-community acquisition and import of
certain face masks, hydro alcoholic gels
- Accelerated VAT Refund for VAT return relating to February 2020
- Tax audits postponed
- Deferral of tax payments (extend payment date)
VAT
February 20 May 2020
March 20 June 2020
April 20 July 2020
Quarterly return 20 June 2020
Employment
- Easier access to regimes of temporary unemployment
- Deferral of social elections
- Teleworking obligatory for all non-essential undertakings
- International measures for certain employees living cross-border and working at home
Other: Compensation for mandatory closure of businesses.
Flemish Government
- a lump-sum compensation of EUR 4,000
- businesses that can remain open on weekdays a compensation of EUR 2,000
- A compensation of EUR 3,000 is also foreseen for businesses that do not need to close but
that can demonstrate that the turnover has decreased with at least 60% between 15 March
2020 and 30 April 2020 compared to the same period in the previous year
Walloon Government
- The Walloon government foresees a lump-sum indemnity of EUR 5,000 for certain businesses
that have to close and
- EUR 2,500 for certain businesses that have to change their opening hours.
If you have any questions regarding this or any of the other initiatives offered to those affected by
the current disruption, please contact Wim Wilssens at wim.wilssens@chbelgium.be.
BULGARIA By May 13, 2020 Bulgaria is in a state of emergency. The Bulgarian government takes the first steps to support the business and the workers in the COVID- 19 pandemic and the declared state of emergency within a month. The government will wait for the coming months to propose new measures or a package of them. There will be no tax or interest breaks, no suspension of utility bills. And in June, there will probably be an update to the budget, which was planned to be balanced for the first time in nearly a decade. In Bulgaria, the state will take part of the salaries of people (60% - per month) working in businesses affected by the coronavirus and threatened with layoffs. The only state-owned bank, the Bulgarian Development Bank (BDB), has announced a line of special liquidity support for businesses suffering from a lack of sufficient funds. The European Investment Bank (EIB) is also expected to announce such lines of credit that Bulgaria will also benefit from. In addition, the government proposes to extend until June 30 the deadline for annual accounting closure and the submission of annual financial statements and declarations under the Corporate Income Tax Act. The deadline for paying local taxes and fees at a discount, which expires at the end of the month, will also be extended because this deadline "is a prerequisite for many people to come together in one place". A special logistics center is being set up at the National Operational Headquarters, which will distribute masks, protective clothing, medicines and more. Not only to hospitals, but also to institutions that provide services to citizens and have direct contacts with them such as social services, police, etc. The government will reconsider its long-term investments and projects and many will be stopped. The Minister of Finance does not accept requests to suspend payment of utility bills for a state of emergency as this will lead to a chain of debt. Bulgarian airports will not accept planes from Italy and Spain, as well as from Iran and South Korea. In case of need for evacuation of Bulgarians, special flights with Bulgaria Air will be organized, but not at the expense of taxpayers. Every Bulgarian who comes from these countries will be quarantined. For now, passenger trains will not be dismantled, and it will be discussed with carriers and mayors of settlements whether some bus routes need to be reduced. All procedural time limits in pending court cases (excluding criminal cases) with a possible state of emergency law are suspended. All procedures of private or state bailiffs will also be stopped and only one notary will work in each area. If you have any questions regarding this or any of the other initiatives offered to those affected by the current disruption, please contact Tatyana Nanovska at tnanovska@ch-bg.com.
CHINA
To assist enterprises to cope with the pressure brought about by the economic downturn and alleviate
their burden, the HKSAR Government has announced various measures to support enterprises and
safeguard jobs, including:-
1) the first round anti-epidemic fund of HK$30 billion (US$4 billion);
2) the HK$120 billion (US$15.5 billion) relief package in the Hong Kong 2020-2021 Budget; and
3) the second round anti-epidemic fund of HK$137.5 billion (US$18 billion).
Announced on 5 February 2020, first round of Anti-epidemic Fund HK$30 billion
1) One-off subsidy of HK$80,000 to each licensed travel agent, each eligible licensed light
refreshment restaurant, food factory, bakery, fresh provision shop, and siu mei and lo mei shops;
2) One-off subsidy of HK$200,000 to each eligible licensed restaurant and factory canteen;
3) One-off subsidy of HK$5,000 to each eligible licensed hawker;
4) A subsidy of up to HK$80,000 to each licensed guesthouse;
5) Setting aside HK$5.6 billion to provide a one-off subsidy to each eligible retailer (HK$80,000 each);
6) Setting aside HK$3.23 billion to provide comprehensive and continuous financial support to the
various transport trades;
7) Setting aside HK$1.02 billion to support the convention and exhibition industry by providing
subsidies to participants and organisers of major conventions and exhibitions;
8) Allocating HK$150 million to support the arts and culture sector by providing subsidies to arts and
cultural groups;
9) Setting aside HK$380 million to provide a six-month rental waiver for tenants and startups at Hong
Kong Science Park, Cyberport and industrial estates to support the innovation and technology
sector;
10) Providing subsidies to training bodies appointed by the Employees Retraining Board, at a total cost
to the Government of about HK$90 million; and
11) Subsidy of HK$50,000 to each eligible contractor, subcontractor and consultant to strengthen
hygienic control measures. The Government announced on April 1, 2020, that the beneficiaries of
the support measures concerned will be extended to cover workers who are engaged in small-
scale works outside construction sites as well as small and medium enterprise (SME) consultants
which are company members of professional institutions and associations. Each eligible worker
will receive a subsidy of HK$1,000 and each eligible consultant will get HK$20,000.
Announced on 26 February 2020, Hong Kong 2020-21 Budget HK$120 billion
1) Providing an extra allowance to eligible social security recipients, equal to one month's standard
rate payment of Comprehensive Social Security Assistance, Old Age Allowance, Old Age Living
Allowance or Disability Allowance. Similar arrangements will apply to recipients of the Work
Incentive Transport Subsidy;
2) Paying one month's rent for lower income tenants living in public rental units of the Hong Kong
Housing Authority and the Hong Kong Housing Society;
3) Paying the examination fees for school candidates sitting for the 2021 Hong Kong Diploma of
Secondary Education Examination;
4) A cash payout of HK$10,000 to Hong Kong permanent residents aged 18 or above;
5) Introducing a concessionary, low-interest loan under the SME Financing Guarantee Scheme,
under which a 100 per cent guarantee will be provided by the Government;
6) Reducing profits tax, salaries tax and tax under personal assessment for 2019-20 by 100 per cent,
subject to a ceiling of HK$20,000;
7) Waiving rates for non-domestic properties for four quarters of 2020-21, subject to a ceiling of
HK$5,000 per quarter in the first two quarters and a ceiling of HK$1,500 per quarter in the
remaining two quarters;
8) Waiving rates for residential properties for four quarters of 2020-21, subject to a ceiling of
HK$1,500 per quarter for each rateable property;
9) Waiving the business registration fees for 2020-21;
10) Waiving the registration fees for all annual returns (except for late delivery) charged by the
Companies Registry for two years;
11) Providing a subsidy to each eligible, non-domestic household account for four extra months to
cover 75 per cent of their monthly billed electricity charges, subject to a monthly cap of
HK$5,000 per account;
12) Waiving 75 per cent of water and sewage charges payable by non-domestic households for four
extra months, subject to a monthly cap of HK$20,000 and HK$12,500, respectively,
per household;
13) Providing a six-month rental subsidy to local recycling enterprises;
14) Reducing rental by 50 per cent for another six months for eligible tenants of government
properties, government land and the EcoPark;
15) Reducing rentals and fees for eligible operators of properties covered by short-term waivers by
50 per cent for another six months;
16) Providing hirers of civic centres under the Leisure and Cultural Services Department with a
50 per cent reduction of hire charges for another six months; and
17) Offering another six months of fees and rent reduction for cruise lines and existing tenants of
the Cruise Terminal.
Announced on 8 April 2020, second round of Anti-epidemic Fund HK$137.5 billion
1) Wage subsidies will be provided to eligible employers - Capped at HK$9,000 per month (i.e. 50 per
cent of median monthly wage in Q2 2019 of HK$18,000) per employee for six months;
2) Providing support for 16 types of specific sectors, including catering, education, transport,
tourism, construction, etc.;
3) Enhancing the SME Financing Guarantee Scheme - additional expenditure of around HK$11.69
billion; additional guarantee commitment of HK$30 billion;4) Easing burden of transport costs, including support on a 50:50 matching basis for the MTR Corporation to provide a 20 per cent fare discount and relaxing temporarily the monthly threshold of the Public Transport Fare Subsidy Scheme; and 5) Deferral of tax payments for three months. If you have any questions regarding this or any of the other initiatives offered to those affected by the current disruption, please contact Andrew Cheng at andrew.cheng@chengcpa.com.hk.
CYPRUS As part of the effort to mitigate the adverse effects of the coronavirus outbreak on the economy, the Cyprus government has adopted a number of measures as follows: Direct tax measures The 31 March 2020 deadline for submission of income tax returns for companies and self-employed persons preparing accounts, and for the payment of the relevant tax due, has been extended to 1 June 2020. Indirect tax measures For most businesses, payment of VAT for quarters ending 29 February, 31 March and 30 April 2020 has been deferred until 10 November 2020, without the imposition of interest and penalties, provided that the relevant quarterly VAT returns are submitted within the normal deadline. Certain categories of businesses that operate on a cash basis and whose operations have not been particularly affected (e.g. groceries, supermarkets, convenience stores, bakeries, pharmacies etc) are not entitled to the above deferral of payments. Moreover, these businesses are obliged, on a temporary basis, to submit VAT returns and make the relevant VAT payments on a monthly basis, instead of quarterly. Measures taken by the Registrar of Companies The publication in the Government Gazette of the three-month notice prior to the strike-off of non compliant companies is postponed until January 2021. The deadline for payment of the annual company levy of €350 for the year 2020 is extended to 31 December 2020, without the imposition of penalties. The introduction of administrative penalties for late filing of statutory documents is postponed until January 2021. The filing of annual returns for year 2019 can be made until 28 January 2021 without the imposition of late-submission fee. Settlement of overdue social contributions For persons (both physical and legal) that, as at 1 March 2020, had entered a scheme for settlement of their overdue social insurance contributions via instalments, the payment of the March and April 2020 instalments is suspended, and the repayment period is effectively extended by two months. General Healthcare System (GHS)
The increase in the contributions to the GHS, which came into effect on 1 March 2020, is suspended for the months of April, May and June 2020. Suspension of evictions under the Rental law Any ongoing eviction process is suspended, and no new evictions processes will be issued by the Courts, until 31 May 2020, so long as the tenants have not defaulted on their obligation to pay rent up to and including 29 February 2020. Suspension of payments re credit facilities provided by financial institutions Borrowers (both physical and legal persons) facing economic difficulties due to the coronavirus are entitled to request suspension of payment of instalments for their credit facilities, provided that the credit facilities were not in arrears for more than 30 days as at 29 February 2020. The suspension is effective from 30 March 2020 and up to 31 December 2020. Financial institutions do not have the right to reject any application, except in cases of credit facilities that were in arrears for more than 30 days as at 29 February 2020. Measures taken by the Ministry of Labour, Welfare and Social Insurance The Ministry has introduced a number of special schemes to provide economic assistance to individuals and businesses that have been adversely affected by the coronavirus, namely (i) complete suspension of business, (ii) partial suspension of business, (iii) special sick leave allowance, (iv) special leave for child care, and (v) self-employed workers. Other measures Various other economic measures and packages are currently under consideration for supporting affected sectors of the economy, as well as for the provision of government guarantees to banks, so as to facilitate the provision of liquidity in the economy through the granting of new credit facilities. If you have any questions regarding this or any of the other initiatives offered to those affected by the current disruption, please contact Peter Economides at peter.economides@pgeconomides.eu.
CZECH REPUBLIC
First of all let me inform you that pace of change containing government measures in the Czech
Republic has been fast-moving since the Czech government has declared a state of emergency by 12th
March 2020; it is planned to be in place until 17th May 2020.
Nevertheless, the Czech government gradually releases respective measures step by step (e.g. some
business activities or public places and sports grounds – all of these under the specific conditions and
restrictions). These are, however, conditioned by the epidemic development, which is hardly
predictable, i.e. the situation might change.
In order to mitigate the pandemic effect, the government of the Czech Republic granted some
programs / financial entitlement / waivers. Below you find an overview of the tax and other measures
and programs which are currently in force.
Financial entitlement / guarantee:
• labour law area:
o partial compensation of total wage costs in the form of reimbursements of wages
to which employees are entitled as long as obstacles to work brought about the
quarantine, emergency measures, crisis-related measures related to the COVID-
19 outbreak and accompanying economic difficulties of employers exist;
o entitlement to nursing allowance due to school facility closure (changes related
to the current situation);
• self-employed persons:
o compensation bonus;
o entitlement to nursing allowance due to school facility closure (changes related
to the current situation);
• bank loan guarantee for SME.
VAT measures:
• waiver of the fine for the late submission of the VAT Declaration and VAT Control
Statement (under the specific conditions);
• VAT and duty exemption related to the importation of the medical equipment (under the
specific conditions);
• waiver of VAT related to the free of charge supply of the specific goods (COVID 19 related).
Corporate Income Tax / Personal Income Tax measures:
• waiver of the fines for the late submission of the CIT / PIT Declaration and for the late
payment of the tax (under the specific conditions);
• waiver of the June 2020 tax advance payment (under the specific conditions).Others:
• deferment of the loan repayments (for the respective period of time and under the
specific conditions);
• adjustments related to the late rent payment (for the respective period of time and under
the specific conditions).
Since the current situation is hardly predictable and a lot of government measures and programs vary
over time, we enclosed only a general overview. In case of your interest we will provide you with the
more detailed information, which, however, might not be the final one.
If you have any questions regarding this or any of the other initiatives offered to those affected by
the current disruption, please contact Monika Ruprechtova at ruprechtova@edmutilitas.cz.FRANCE 1. Payment deadlines for social and / or tax deadlines (Social contributions, direct taxes) 2. In the most difficult situations, direct tax rebates can be decided as part of an individual examination of requests; 3. Very Small Enterprises (VSEs) facing economic hardship can postpone the payment of utility bills (water, gas, electricity) and rental payments. 4. Aid of up to 1,500 euros for very small businesses, the self-employed, the liberal professions and micro-entrepreneurs most affected by the solidarity fund financed by the State and the Regions; 5. The French Government has announced an exceptional State guarantee system to support corporate financing, up to €300 billion. This will allow banks to grant cash loans to companies of all sizes, enabling them to have the cash necessary to continue their activity and preserve employment. This is temporary, since it will only cover than loans made from March 1 to December 31 of this year. 6. Support from the Government and the central bank of France (credit mediation) to negotiate with its bank a rescheduling of bank credits; 7. Recourse to ‘part-time activity’ is made possible and easier for businesses in order to offset the slowing down of business activities. Companies may apply for the part-time activity scheme under exceptional circumstances (Article R.5122-1 of the French Labor Code), specifying the reasons justifying the recourse to part-time activity, the foreseeable period of under-activity and the number of employees concerned. the French Government announced that part-time activity would be compensated up to 84% of the net salary of employees, although a ceiling is not excluded for the highest salaries. In addition, the French Government indicated that the employer who is required to pay for the allowance will be refunded within 10 days. 8. Support for the treatment of a conflict with customers or suppliers by the Business Mediator; 9. Recognition by the Government and local authorities of the Coronavirus as a case of force majeure for their public contracts. Consequently, for all state and local government contracts, the delay penalties will not be applied. 10. A support plan for French exporting companies If you have any questions regarding this or any of the other initiatives offered to those affected by the current disruption, please contact Abdeslam El Baghli a.elbaghli@clarksonhyde.fr.
GERMANY For all individuals or firms who have been economically affected by the corona crisis in Germany the following applies nationwide: TAX MEASURES Taxpayers who can show that they have been affected by the corona pandemic can submit applications for deferral of taxes due or becoming due until 31 December 2020. The deferral is generally granted without interest. The same applies to deferrals for taxes becoming due after 31 December 2020. Applications can also be filed to adjust the advance payments for income tax and corporate income tax in 2020 and 2021. It is now also possible to get a refund of advance payments for 2019 if a tax loss carry-backward from 2020 is shown to be likely. Enforcement measures for outstanding tax payments can be abandoned until 31 December 2020. Penalties for late payments incurred as of 19 March 2020 will to be waived until 31 December 2020. Tax deduction amounts (wage witholding tax, withholding tax on interest and dividends) cannot be deferred, only their enforcement can be postponed. Prepayment adjustments and payment deferrals are also claimable for trade tax. The deadline for wage withholding tax declarations can be extended on application if the delay is caused by the corona pandemic. In almost all federal states there is now the possibility to reclaim the special VAT advance payment for the permanent deadline extension. The deadline extension remains active despite of the refund. Upon request, social security contributions for the months of March to May can be deferred without interest or any security deposit until the end of July 2020. There is also a simplified verification of donations and a favorable tax treatment of aid measures. ECONOMIC SUPPORT Emergency aid is available in all federal states to support small and medium-sized companies with up to 50 employees. Depending on the size of the company, non-repayable emergency aid to secure economic existence and to bridge current liquidity shortages is granted on request. The payments range between EUR 9,000 and EUR 30,000 and are further limited to the amount of liquidity shortage caused directly by the corona pandemic or a corresponding drop in sales.
A wide range of further (repayable) liquidity support (loans and guarantees) can be applied for via the local bank to German state-owned development bank KfW. This support is available to firms of all sizes. Workers who have to reduce their working ours due to the corona crisis receive short-time working benefits for up to 21 months. The benefit amounts to 60 % (67 % for workers with dependent children) of the net wage and will now be increased up to 80 % (or 87 % respectively) after the 7th month. If you have any questions regarding this or any of the other initiatives offered to those affected by the current disruption, please contact Rainer Lamm at Rainer.Lamm@dffk.de.
HUNGARY
Government Decree no. 57/2020. (III. 23.)
During the time of the emergency, the following provisions of Act LIII of 1994 on judicial enforcement shall apply
with the following differences effect from 24 March 2020:
no bailiffs can take place
if the debtor indicates his intention to pay in instalments, the bailiff may determine this without the prior
consent of the person seeking enforcement
bailiff suspends personal customer acceptance
the applicant for information may be informed by means of telecommunications
traditional auction cannot be held,
no on-site procedural action can be taken
no action may be taken for the evacuation of the property
the bailiff may not take action to withdraw the vehicle seized during the enforcement procedure
the bailiff may not take action to auction the residential property of the natural person debtor
in the course of enforcement proceedings, a person who has failed to comply with his obligations due to
the epidemiological measures cannot be fined
At the request of the debtor, the enforcement court may suspend the enforcement if the debtor is placed in a
life situation which is an equitable circumstance in connection with the epidemiological measures.
Provisions specifically relating to proceedings pending in front of the tax authority:
From 24 March 2020, the enforcement proceedings pending in front of the tax authority are suspended.
From 24 March 2020 until the 15th day after the end of the emergency, the limitation period for
enforcement is suspended.
In cases of suspension, the tax authority shall:
If the collection initiated by the tax authority has not yet been completed by the payment service provider,
the tax authority shall immediately take action to withdraw the collection.
If the payment service provider has collected the debt during the interruption and transferred the amount
to the tax authority, the tax authority will reimburse it to the debtor within 8 days of becoming aware of it.
If the tax authorities have forfeited income and the employer has not yet paid the tax to the tax authority,
the tax authority informs the employer for the suspension of the deduction of income.
The employer must reimburse to the debtor the amount which he has deducted during the period of
suspension but which has not yet been transferred to the tax authorities.
The amount transferred by the employer to the tax authority on the basis of the income disqualification
after the start of the interruption shall be refunded to the debtor within 8 days.
Government Decree no. 58/2020. (III. 23.)
eligibility for health care and family support benefits with regard to the care and upbringing of a child is
extended until the end of emergencyGovernment Decree no. 59/2020. (III. 23.)
Eligibility for childcare fee (GYED), grand parenting childcare fee and childcare fee as equitable cash benefit
during the emergency shall be deemed to continue to exist and the benefit shall be paid in calendar days
during the period of emergency.
Eligibility for childcare allowance (GYES) and child-upbringing allowance (GYET) shall be deemed to continue
to exist during the period of emergency and shall be paid in calendar days during the period of emergency.
Government Decree no. 60/2020. (III. 23.)
The payment service provider does not apply strong customer authentication if the individual amount of the
touch electronic payment transaction does not exceed fifteen thousand HUF.
According to the Government decree, from April 15, 2020 at the latest, it will be realized that in touch-based
payment the limit will be no longer HUF 5,000, only in case of the payment above HUF 15,000 the PIN code of
the card will be necessary.
Government Decree no. 61/2020. (III. 23.)
do not have to pay social contribution tax,
do not have to pay vocational training contribution,
must pay only the 4% health care contribution in kind on the basis of the contributory income but up to
a maximum of HUF 7710,
for March, April, May, and June 2020,
in respect of the employment of a natural person in an employment relationship,
with regard to this status of self-employed, and
with regard to this status of corporate entrepreneur,
who performs the following activity identified by TEAOR and TESZOR as the actual principal activity, means that,
in the six months prior to March 24, 2020, the taxpayer generated most of the revenue, or at least 30% of the
revenue from the following activities:
1. taxi passenger transport (TEÁOR and TESZOR 49.32),
2. accommodation services (TEÁOR and TESZOR 55),
3. catering (TEÁOR and TESZOR 56),
4. creative, artistic, entertainment activities (TEÁOR and TESZOR 90),
5. sport, entertainment and leisure activities (TEÁOR and TESZOR 93),
6. gambling, betting (TEÁOR and TESZOR 92),
7. production of films, videos, television programs, sound recording publishing (TEÁOR and TESZOR 59),
8. organization of conferences and trade shows (TEÁOR and TESZOR 82.30),
9. publication of daily newspapers (TEÁOR and TESZOR 58.13),
10. publication of periodicals and magazines (TEÁOR and TESZOR 58.14) and
11. program compilation, broadcasting (TEÁOR and TESZOR 60).
For those taxpayers listed above who are required to pay the rehabilitation contribution, the rate of the
rehabilitation contribution is two-thirds of the contribution pursuant to point 5, article 23 of Act on rehabilitation
contribution and benefits for disabled persons. In addition, they are not required to pay any advance on the
rehabilitation contribution.
The individual Small Business Tax (KIVA) taxpayer who carries out one of the above activities as an actual
principal activity does not consider the amount of personal expenses as a small business tax base in determining
the small business tax liability for the months of March, April, May and June 2020.
The Itemized tax to small businesses (KATA) taxpayer who is engaged in any of the following activities
(hereinafter “exempted activities”) shall be exempt from itemized tax to small businesses with respect of March,
April, May and June 2020.
1. taxi passenger transport (TEÁOR and TESZOR 4932),
2. hairdressing, beauty treatment (TEÁOR and TESZOR 9602),
3. painting, glazing (TEÁOR and TESZOR 4334),
4. other human health care (TEÁOR and TESZOR 8690),
5. electricians (TEÁOR and TESZOR 4321),
6. physical well-being service (TEÁOR and TESZOR 9604),
7. performing arts (TEÁOR and TESZOR 9001),
8. water, gas, heating, air conditioning installation (TEÁOR and TESZOR 4322),
9. specialist outpatient care (TEÁOR and TESZOR 8622),10. joinery installation (TEÁOR and TESZOR 4332), 11. sports, leisure training (TEÁOR and TESZOR 8551), 12. roofing, roof construction (TEÁOR and TESZOR 4391), 13. general outpatient care (TEÁOR and TESZOR 8621), 14. floor and wall covering (TEÁOR and TESZOR 4333), 15. outpatient dental care (TEÁOR and TESZOR 8623), 16. activities ancillary to the performing arts (TEÁOR and TESZOR 9002), 17. other sports activities (TEÁOR and TESZOR 9319), 18. inpatient care (TEÁOR and TESZOR 8610), 19. organization of conferences, trade shows (TEÁOR and TESZOR 8230), 20. holiday and other temporary accommodation services (TEÁOR and TESZOR 5520), 21. exercise service (TEÁOR and TESZOR 9313), 22. other catering (TEÁOR and TESZOR 5629), 23. other accommodation services (TEÁOR and TESZOR 5590), 24. gambling, betting (TEÁOR and TESZOR 9200), 25. social work activities without accommodation for the elderly and disabled (TEÁOR and TESZOR 8810) and 26. hotel service (TEÁOR and TESZOR 5510). Exemption from the obligation to pay taxes does not affect the entitlement of social security benefits and the amount of those benefits. The KATA taxpayer can pay its tax debt which was due before 1 March 2020 in instalments at no extra cost. If you have any questions regarding this or any of the other initiatives offered to those affected by the current disruption, please contact Lea Kovacs-Kneitner at info@tilea.hu.
INDONESIA
Indonesia has confirmed its first case of covid-19 at March 1, 2020. Until May 4, 2020 Indonesian
positive case has reached 11.587.
During covid-19 pandemic in Indonesia, our government has made new regulations to avoid spreading
of Covid-19 and maintain economic condition during this pandemic. They are PSBB (Pembatasan Sosial
Berskala Besar / Large-Scale Social Distancing) until further notice and Reduction taxes for domestic
tax payer.
The following is rule of PSBB until further notice:
1. Prohibition of Studying at school. Student must study at home
2. All of worker must work From Home. All of Industry prohibited to open their office or factory
except these following industries:
a) Health
b) Food, Drink & Agriculture
c) Energy
d) Communication, Technology, Information
e) Finance
f) Construction
g) Strategic Industry
h) Public Service and National Vital Object
i) Daily Needs
3. Industries are allowed to operate must do health protocol such as using face mask, hand
gloves, washing hands more often or using antiseptic liquid, and keep distance 1 meter with
other people.
4. People are not allowed to go to their hometown.
5. A car is not allowed to carry more than 50% of total seat passengers
Normal company income tax rate in Indonesia is 25%. But new regulations will decrease normal tax
gradually and giving other tax incentives. This following table of tax incentives:
No Tax Incentives
1 Income Tax art 21 – Monthly tax until September 2020 is borne by government.
Personal This incentive valid for people work in certain industries (1062
business fields) and gross income no more than IDR 200 Million
2 Income Tax art 22 – Exemption import tax for certain industries (431 business
Import fields) until September 30, 2020.3 Income Tax art 25 – Reduction 30% of Monthly Tax instalments until September
Monthly Tax 2020
Instalments
4 VAT Acceleration of VAT restitution for certain industries (431
business fields) and total VAT restitution less than IDR 5 Billion.
5 Company Income Tax Reduction Company income tax to 22% in 2020 and 2021, and
Rate Reduction reduction to 20% start from 2022. For specific Public Entities,
company income tax could get 3% lower.
6 Final Tax for Micro Final Tax for Micro Entities is borne by government
Entities (PP23)
We still do Work from Home (WFH) during covid-19 pandemic. We build relation with our client and
partners using social media by video call, email and by phone. We do call conference with our team
every week.
If you have any questions regarding this or any of the other initiatives offered to those affected by
the current disruption, please contact Ricky Jhonatan at ricky.jhonatan@sahatmt.co.id.ITALY Cura Italia” Decree, the Revenue Agency answers the questions of associations, professionals and taxpayers The Italian tax administration provides further clarifications regarding a vast range of fiscal doubts on the “Cura Italia” Decree. Particularly, with today's Circular n. 8/2020, which follows a cycle of "thematic" clarifying documents already published, the Agency provides an additional wide range of fiscal explanations to questions from operators and the press regarding the practical application of the Decree. Among the issues addressed, the extensions and suspensions of the terms for payments and other obligations, the suspension of the activities usually performed by tax authorities, as well as that of the payments entrusted to the collection agent. The contents at issue - Today's document focuses, among other things, on specific fiscal measures enacted to support businesses and workers. Furthermore, clarifications are also provided on the deductibility of liberal donations by companies concerning food solidarity measures, even if carried out directly in favor of the public and private hospitalization, care, reception and assistance structures involved in the management of the COVID-19 emergency. Tax Registry or “Anagrafe Tributaria”, stop sending data - The Circular also confirms the break, until 30 June, of communications to the Tax Registry. The postponement of the terms will apply to both annual and monthly communications. Liberal payments of companies and tax credit for shops and stores equal to 60% of the monthly rental for real estate properties - Regarding the finalization of the 60 per cent tax credit in reference to the agreed rent for shops and stores, it will accrue provided that the rent has actually been paid. While, with regard to the deductibility of the liberal disbursements from companies, the Revenue specifies that as it is not based on the income achieved, the deduction will also apply in the presence of a tax loss of the firm made during the fiscal period in which the liberal expenditure in question was made. The Revenue Commitment - The Revenue Commitment in providing clarifications to questions that arrive day after day during the emergency is continuous. To date, the clarifications and responses of the Revenue regarding doubts originating from the COVID emergency are collected in the following documents published and available online on the Revenue Agency website: • circular no. 4 / E of 20 March 2020 • circular no. 5 / E of 20 March 2020 • circular no. 6 / E of 23 March 2020 • circular n. 7 / E of March 27, 2020 • resolution no. 12 / E of 18 March 2020 • resolution no. 14 / E of 21 March 2020.
Tax payments freeze – As far as tax payment and compliance deadlines are concerned, the decree suspends, among other fiscal duties, certain payments of withholding tax on wages. At the same time also freezes payments of social security contributions, of mandatory insurance premiums and of related obligations. Furthermore, the value added tax (Vat) payments due for March 2020 are also delayed. About Vat, firstly deferred only for the tourism-hotel sector the decree extends the value added tax disbursements postponement to other subjects operating in different sectors. When the new fiscal deadline? Taxes not levied by withholding agents can be paid directly by the taxpayer in one lump- sum by 31 May 2020 or in a maximum of five equal monthly instalments, starting from May 2020, without penalties or interest for late payment. Fiscal collection deferred – The decree also suspends collection payment deadlines related to payment notices, or “cartelle di pagamento”, issued by collection agents and by the social security authorities, as well as tax assessment notices, the so called “avvisi di accertamento”, issued by the tax authorities. Tax relief and incentives in response to coronavirus, Covid-19 – Tax incentives provided concern payments of “employee bonuses” and tax credits for the expenses incurred by businesses to sanitize work premises. Besides, donations made by individuals and non- profit entities during 2020 to the state, regions, local public authorities, other public institutions or legally recognized non-profit organizations to finance investments or expenses aimed at managing the Covid-19 emergency can benefit from a 30% tax deduction subject to a cap of €30.000. Tax assessment, tax collection and tax litigation – Finally, the decree provides for a temporary suspension of certain tax agency deadlines. For instance, from 8 March to 31 May 2020, there will be a postponement of the deadlines by which the tax agency must finalize tax audits, issue and serve notices of assessment, request payments and pursue litigation. The same time rescheduling apply either to tax rulings - ordinary rulings, fast-track rulings under the cooperative compliance regime, and substantial investment rulings – or to the admission to the cooperative compliance regime. Answers to applications for international rulings, such as APAs, unilateral corresponding adjustments on transfer pricing, and patent box relief are also freeze. If you have any questions regarding this or any of the other initiatives offered to those affected by the current disruption, please contact Alberto C. Magri at ac.magri@clarksonhyde.it.
ISRAEL
The Covid 19 (Coronavirus) outbreak has changed the way we live on almost every aspect of life. The
long term effect is yet to be seen and learned. One thing has no doubt, though- the devastating impact
on the world of businesses. In order to support the economy and the business sector, the state of
Israel has introduced some measures at a total sum of 25 billons Euro.
Here are in bullets the steps that have been taken and the criteria to receive governmental business
grants/ aid, which were divided into steps according to the size of business:
1. First leg- Small businesses
•Age of dealer - 20 and over.
• Dealer filed annual reports for 2018 and, if it starts operating in 2019, must submit the 2019 reports
within 3 months.
•Filing of VAT Reports - The Dealer filed VAT Reports for March-April 2019.
•Date of commencement of activities - Only a dealer who was active in March and April 2019 can
qualify for maximum of benefits which are provided.
•Taxable income for 2018 - The total taxable income of the trader (income less deductions), plus
income (if any) from housing rent and exempt allowances, amounted to € 60,000 or less in 2018, but
was higher than € 6,000 in all The year 2018.
•Taxable household income in 2018 - The total taxable income of the household (both spouses) in
2018, as both employees and self-employed persons, did not exceed € 90,000 gross.
For example, a self-employed person whose annual taxable income in 2018 was € 40,000 and his
spouse received a gross salary of € 60,000 (including car value, etc.) in 2018, is not eligible for the
grant, because the combined (gross) income was high From € 90,000.
•Submitting a statement on the Tax Authority website - In order to receive the April Self-Employee
Grant, a self- employee must go to the Tax Authority website and declare the following two things:
.1That the business was active on 29/02/2020.
.2Estimated reduction in the turnover in March and April 2020, is at least a 25% compared to the one
in March and April 2019 turnover.
if the March and April 2020 VAT report will not see at least a 25% decrease in turnover The dealer will
be required to repay the grant.
2. Second leg- small/medium businessThe criteria for receiving the second part of the grant for self-employed and small businesses following the Corona crisis, which will be paid from May 2020 The support is suitable for: •Exempt / Authorized Dealer and share owners of private companies - Eligible for Exemption Dealers, Licensed Dealers and share owners of private companies. •Age of dealer - 20 and over. •Submission of Annual Reports - The Dealer has submitted Annual Reports for 2018 and, if it commences operations in 2019, must submit the 2019 Reports within 3 months. •Filing of VAT Reports / Statement of Exemption Dealer - The Dealer filed VAT Reports for March- June 2019, and if it is an Exemption Dealer - filed an Exemption Dealer Statement in January 2020. •Start date of activity - Not yet published. •Taxable income for 2018 - The total taxable income of the trader, plus the income (if any) from housing rent and exempt allowances, did not exceed € 270,000 in 2018. If this is a new business - the income limit Refer to 2019. In addition, the average income should be over € 200 a month. •Taxable household income in 2018 - no limit. •Filling a tax authority's website - To receive the April Self-Employee Grant, one needs to enter the Tax Authority's website and state the estimation that in March-June 2020, there will be at least a 25% reduction in the turnover compared to turnover in the corresponding months of 2019 Or 2018 (for the dealer’s choice). If the VAT reports of the dealer for the relevant months 2020 do not see a reduction of at least 25% in the transaction cycle, the dealer will be required to repay the grant. Self-employed persons are eligible to receive 2 grants - the first - a grant of up to € 1,500 that was delivered by 7/4, and the second - a grant of up to € 3,500 to be awarded at the beginning of May 2020, with some also receiving a "small business addition" in the amount of up to € 750. April 2020 grant - The amount of the first grant to self-employed, which was paid in early April 2020, was 65% of the average monthly income in 2018, or € 1,500 whichever is lower, for self-employed whose monthly income in 2018 was up to € 4,500. Self-employed persons whose monthly income in 2018 was between NIS 16,000 and NIS 20,000 - will receive a reduced grant, which will gradually decrease to NIS 3,000 as income increases. Self-employed persons whose monthly income in 2018 was higher than € 5,500 - not eligible for a grant. The grants are subject to taxes. May 2020 grant - In May, the self-employed are expected to receive a grant, as well as an addition to a small business. The second grant amount to self-employed workers, to be paid in early May 2020, is expected to amount to 70% of average monthly income in 2018, or € 3,000, whichever is lower. For a self-employed person whose average monthly income from a business is higher than € 10,000, the grant will be reduced by 17.3 cent for every € over monthly income of € 10,000. In addition, some self-employed are entitled to "small business addition" - for businesses whose turnover in 2019 was between € 400-6,000 per month according to the following key: •Average monthly turnover between € 400 and € 2,500 - will receive an additional € 200.
•Average monthly average between € 2,500 and € 4,500 - will receive an additional € 500. •Average monthly averaging between € 4,500 and € 7,000 - will receive an additional € 700. If you have any questions regarding this or any of the other initiatives offered to those affected by the current disruption, please contact Arie Barsky at arie@bbag.co.il.
LITHUANIA
Support measures for business
The Ministry of Finance has presented an aid package worth EUR 2 billion for companies affected by
the coronavirus, who may already apply for additional funding.
The package includes grants, guarantees and other financial instruments.
Companies facing difficulties due to the coronavirus and currently lacking working capital should
review their loan repayment schedules and contact financial institutions (banks, leasing or factoring
companies, credit unions, crowdfunding platforms, etc.), who will provide them with all the
necessary information.
Initiatives adopted by the Ministry of Finance:
• evaluation terms for the issuing of guarantees is to be shortened, new measures and schemes for
their implementation are to be developed;
• the concept of revolving loans is to be expanded (loans/guarantees will be granted not only for
business development but also for liquidity);
• additional funding activities are to be included;
• no regional restrictions will remain in force;
• measures will be accessible for large companies as well;
• the range of service providers is to be expanded (alternative funders may join);
• the limit of guarantees is to be increased by more than 4 times;
• interest will be reimbursed for 6 months (for loans – from the date of the beginning of quarantine),
when a banks grants loan repayment leave.
The Ministry of the Economy and Innovation has presented an aid package for small and medium
enterprises (SMEs), as well as large companies facing difficulties due to the coronavirus.
Initiatives adopted by the Ministry of the Economy and Innovation:
• loans to pay bills to suppliers with whom companies have been unable to settle accounts due to the
suspended activities of SMEs. For more information please visit here;
• loans to maintain liquidity for SMEs and large companies. For more information please
visit here and here;
• loans from alternative investors for SMEs. For more information please visit here.
For more information regarding the financial measures for business provided by Investment and
Business Guarantees (INVEGA) please visit here.
Upcoming initiative:
• COVID-19 special fund for medium and large companies which will allow companies to recover more
quickly. Various instruments used in the financial market will be applicable i.e. loans, bonds,
convertible bonds, shares, as well as the funds of other investors. In its initial stage, the fund plans to
allocate EUR 100 million.Tax payments
Automatic postponement of tax payments
The State Tax Inspectorate (the STI) announced a list of taxpayers that may have been directly
affected by the coronavirus. You can check the list here (currently available only in Lithuanian).
From the 16th of March 2020 until the end of the state of emergency and quarantine period, all
taxpayers listed in the announcement will be automatically (with no additional appeal to the STI)
exempt from:
• tax recovery (i.e. the STI and the State Social Insurance Fund Board (SODRA) will not collect reported
and unpaid taxes);
• interest payment (i.e. the STI and SODRA will not calculate interests for late payment of taxes).
Individual requests for the postponement of tax payments
Taxpayers who have not been included in the list, but have also been affected by the coronavirus and
would like to postpone tax payments (i.e. conclude a tax loan agreement or use a tax recovery or
interest payment), can submit a simplified application to the STI.
The taxpayer needs to:
• fill in an application form (currently available in Lithuanian only);
• indicate the reasons why the applicant should be considered to have been negatively affected by the
coronavirus (e.g. due to restrictions directly applicable to economic activities, changes in the market,
negative impact caused by the coronavirus to business partners’ economic activities, etc.).
No additional mandatory documents are required when submitting an application form, but STI retain
the right to request them in individual cases.
Tax loan agreements
A tax loan agreement can only be concluded when the taxpayer has an obligation to pay taxes (i.e. has
submitted tax return forms and the obligation to pay taxes has occurred before the 16th March).
After the end of the state of emergency, taxpayers on the announced list will have 2 months to enter
into a tax loan agreement. When the tax loan agreement has been concluded, tax payment may be
postponed until the end of the state of emergency and should be paid according to an agreed
timetable (if the taxpayer does not request an increased payment). Those who already have such
agreements may submit a request to change their tax loan schedule and terms.
Other postponed tax obligations
The deadline for declaring and paying annual personal income tax is postponed until the 1st of July
2020. The start of the period for the filling of personal income tax returns was postponed and
commenced on the 15th of April.
The term for the repayment of personal income tax overpayments remains unchanged. Taxpayers
who have correctly and punctually filed their returns will be refunded by the 31st of July 2020.
Real estate and land taxes
The Municipality of Vilnius adopted a decision valid from the 16th of March 2020 until the end of the
state of emergency and quarantine period:
• to exempt real estate taxpayers (i.e. legal and natural persons whose activities were limited or
restricted due to the state of emergency) from the obligations to pay real estate and land taxes;
• taxes will be collected from taxpayers that still operate during the state of emergency e.g. food
retailers, pharmacies and etc.It is important here to note that each municipality retains the right to individually decide whether the
real estate and land taxes should be reduced due to the state of emergency or quarantine. For more
detailed information, please contact the relevant local municipality.
Subsidies for wages paid during the idle time
Request for state subsidies
All employers, regardless of their economic sector, are entitled to state subsidies for their employees’
salaries if idle time was announced due to the state of emergency and quarantine under Article 47
part 1 (2) of the Labour Code.
To qualify for state subsidies, employers also need to fulfill the following additional requirements:
• during the past year the employer and its representatives have not had any administrative penalties
for illegal or undeclared work, or violations for employing foreign nationals;
• during the last year the employer’s representatives have not had more than one administrative
penalty for violations of labour laws, occupational safety and health regulations, or the terms of
commercial activities;
• the employer does not have the status of a budgetary entity;
• the employer must not be bankrupt or in liquidation.
The amount of state subsidies
An employer has the right to select from two models as regards their eligible amount of state subsidy
for idle time:
• 70% of the salary of the employee, but not more than EUR 910.5 gross (for a full month of idle time);
or
• 90% of the salary of the employee, but not more than EUR 607 gross (for a full month of idle time).
In the event that idle time is announced for less than a month, the amount of state subsidy will be
calculated proportionally.
The duration of subsidies
State subsidies shall be paid from the date when the idle time was announced due to the state of
emergency and quarantine.
Employers must retain at least 50 % of all employee positions (workplace) for which state subsidies
were paid for at least 3 months after the end of the subsidy payments. Otherwise, the employer will
need to return the subsidy in full amount.
If you have any questions regarding this or any of the other initiatives offered to those affected by
the current disruption, please contact Kristina Alekniene at kristina.alekniene@inova.lt.You can also read
