New tax package to support entrepreneurs

Entrepreneurs who are explicitly restricted may:

• waive the advances on personal and corporate income tax,
• waive advances on road tax; and
• defer the paying of the VAT.

Income tax

Based on the represented tax package, the taxpayers for which the income from the restricted activities is main source of income are not obliged to pay the income tax advance payments which would be due in the period between 15 October 2020 and 15 December 2020. The payment shall be waived automatically based on the notification sent to the respective Tax authority.

Road Tax

As regards the road tax, the taxpayers for which the income from the restricted activities is main source of income are not obliged to pay the tax advances on road tax of 2020.

VAT

VAT payers which has been restricted partly or fully by the government are exempted from the late payment interests for the tax for periods of September 2020, October 2020 and November 2020. If the VAT payer submits the VAT return on quarterly basis, the respective tax period is third quarter 2020. Thus, under the condition of paying the tax by the end of the year (i.e. by 31 December 2020), the late payment interests will not be imposed, i.e. in other words,  entrepreneurs affected by the government restrictions may pay tax within the deferred deadline.