COVID-19: Global Tax Measures

In order to minimize the impact of COVID-19 on individuals and businesses, tax authorities from around the globe are rolling out various measures including pushing back filing and tax payment deadlines. Keeping in mind that the situation is extremely fluid, here is the current summary by country:

Argentina

Tax return deadline: deferred in all jurisdictions, up to March 31, 2020. This does not include extension on regular deadlines, previously established.
Special considerations for the Health industry, like exemption of import duties for medical supplies and vaccines.
Exemption of Social Security taxes for certain companies engaged in activities particularly affected by the COVID-19 pandemic like hotels, restaurants, etc.
Further COVID-19 related measures: pending implementation

Austria

Tax return deadline: April 30, 2020
Tax payment deadline: dependant on assessment date
Extensions are possible
COVID-19 related measures: under review

Belgium

Tax payment deadline: two months from assessment date
Extensions are possible for the tax return deadline
COVID-19 related measures: additional payment extension of 2 months

Bolivia

Tax payment deadline: postponed for 30 days
Installments established to pay Corporate Income Tax
Cash donations made to hospital centers until December 31, 2020 will be deductible for the CIT
VAT paid will not be included in the tax base of the Transaction Tax
Process deadlines are suspended

Brazil

Postponement of federal taxes which are due for small companies that opt for a simplified tax scheme.
Postponement of administrative actions (by tax authorities) related to delayed in the payment of debts by taxpayers.
Partial exemption for import of products necessary to combat COVID-19.
Suspension of the payment of pensions for three months (March, April and May). The amount due will be paid by employers in up to 6 installments as from July 2020 onward.

Canada

Tax return deadline: June 1, 2020 (for individuals and certain trusts)
Tax payment deadline: September 1, 2020 (for individuals, trusts and corporations)
Modification of the eligibility conditions to the Employment Insurance sickness benefits
Creation of an income supplement for certain workers and parents
Reducing the required minimum withdrawals from Registered Retirement Income Funds.
Special subsidy grant to small businesses to help them keep their employees.
Some provinces have also implemented new tax policies as a consequence of COVID-19.

Chile

Tax return deadline: April 30, 2020
Extensions are possible for the tax return deadline
COVID-19 related measures:
- Suspension of monthly provisional payments (PPM). PPM to be paid in April, May and June.
- Postponement of VAT payment for the next 3 months for all companies with sales of less than US $11,750,000. VAT to be paid in April, May and June.
- Postponement of payment in 6 or 12 installments (second option). Fees begin to be paid from July.
- Postponement until July 2020 of the payment of income tax for SMEs.
- Postponement of April tax payments for companies with sales of less than US $11,750,000.
- Transitory reduction of stamp duty and stamps to 0% for all credit operations during the next 6 months.
- Relief measures for the treatment of tax debts with the General Treasury of the Republic.
- All the expenses of the companies associated with facing the health contingency will be accepted as a tax expense.

Colombia

Income Tax payment deadline extensions for companies dedicated to the hotel and tourism
Changes in the deadlines for the payment of surcharges to financial sector entities
Extension in terms of tax normalization benefits.

Costa Rica

For VAT, two special regulations are proposed:
- First, a moratorium for the months of March, April and May 2020. Taxpayers will be required to file their respective VAT returns, but, as a benefit of the moratorium, they will be able to postpone those tax obligations until December 31, 2020, with no penalties.
- Secondly, a VAT exemption on commercial leases, for the months of April, May and June 2020.
Regarding Income Tax, exempt the payment of income tax advances during the months of April, May and June of the year 2020.
As for current customs tariffs, as well as for the selective consumption tax, a moratorium has been issued for the months of April, May and June 2020, with payment postponed until December 31, 2020.
Taxpayers are still required to file their corresponding returns for those taxes. Likewise, as would also happen in the moratorium provided for VAT, in the case of tariffs and the selective consumption tax, those who pay their obligations after December 31, 2020, would be subject to surcharges for interest and penalties.

Croatia

Tax return deadline: February 29, 2020
Tax payment deadline: June 30, 2020
COVID-19 related measures: additional 3 to 6 months for tax payments

El Salvador

Taxpayers whose tax payable is less than US$ 5,000, would have have an extension of 30 days to present the income statement (normally presented on April 30th) and can divided in 8 monthly payments (normally 6) without interest nor fines to be applied.
The monthly payed income tax advances (1.75%) for the periods of March, April and May are extended for 3 months
For Tourism industry: Legal or natural person whose income tax are calculated below US$ 25,000, have an extension of 30 days to pay without interest nor fines to be applied. The 5% contributions for tourism activities are suspended
Total exemption of taxes for donations made to the state to attend the COVID-19 outbreak.

Italy

Tax return deadline: July 23, 2020 (employees) or November 30, 2020 (self-employed), depending on filing status.
Tax payment deadlines: June 30, 2020 and November 30, 2020
Extensions are possible
COVID-19 related measures: Filing deadline extended to September 3, 2020

Kazakhstan

Tax return deadline: March 31, 2020
Tax payment deadline: April 10, 2020
Filing extensions are possible to April 30, 2020
COVID-19 related measures: under review

Malaysia

Tax return deadline: June 30, 2020
Tax payment deadline: June 30, 2020
COVID-19 related measures: Tax filing and payment deadline extended as noted above.

Paraguay

Automatic financing of taxes with due date on March and April. Financing consists of a 20% payment and five installments with no interest. Likewise, no breaches, interest, surcharges or fines will be charged for the delays in payments.
Banks have decided not to charge installments corresponding to March, April and May, moving them to the end of the financing plan of loans, also with no interest or surcharges.
Different measures for SMEs are being analyzed, as well as Social benefits for less favored individuals and those informal workers affected by this situation.
Payment of social security charges is also under analysis, to try to suspend them without this meaning the loss of the contributors' rights.

Peru

Extensions of tax filings and payments already in force.
Release of funds from tax detractions.
Discretionary application of sanctions.
Extension up to June of tax filings for individuals with earnings not greater than PEN 9.6 million
Flexibility for fraction, deferment and refinancing of tax debts

Poland

Tax return deadline: April 30, 2020
Tax payment deadline: April 30, 2020
Extensions are not currently possible
COVID-19 related measures: under review

Romania

Extensions are possible
COVID-19 related measures: Tax filing deadline extended to April 25, 2020

Russia

Tax return deadline: April 3, 2020
Tax payment deadline: July 15, 2020
Extensions are possible in some cases
COVID-19 related measures: under review

Slovakia

Tax return deadline: June 30, 2020
Tax payment deadline: June 30, 2020
Extensions are possible
COVID-19 related measures: Tax filing and payment deadline extended as noted above.

United States

Tax return deadline: July 15, 2020
Tax payment deadline: July 15, 2020
COVID-19 related measures:
- Emergency legislation enacted in response to COVID-19 includes paid leave for employees and payroll tax credits for employers.
- US States are granting extensions of time for filing and payment of state income taxes.
- High-deductible health plans (HDHPs) can provide medical care associated with testing for and treatment of COVID-19 prior to satisfying the plan’s deductible, per IRS relief (Notice 2020-15) pending further guidance.
- US Congress is also currently working on a new US Taxpayer Relief Bill related to COVID-19

Uruguay

Taxpayers included in subsection e) from article 52 of Title 4 (small companies) may pay the Minimum VAT corresponding to the months of February and March 2020, in six equal installments, consecutive and without interest as from May 2020. The expiration established for March 2020 was postponed until May 2020.
Tax payments of the CEDE and NO CEDE companies corresponding to the month of February were extended until Friday, March 27. Public companies are exempted from this extension.
The payment to Banco de Prevision Social (BPS) of companies included in the single-tax regime (Monotributo) and the contributions of owners and partners of personal companies are deferred, corresponding to the months of payment April and May. The 60% of the contribution will be paid in 6 installments starting as of June, while the remaining 40% will be paid by the State.

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This article has been prepared for the general information of our clients. Specific professional advice should be obtained prior to the implementation of any suggestion contained in this article. Please note that this publication should not be considered a substitute for personalized tax advice related to your particular situation.

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