Turning the state of epidemic into a state of epidemic emergency changes the tax situation for some entrepreneurs. From 16 May, tax preferences aimed at combating and counteracting the effects of the COVID-19 pandemic will be gradually lifted. What changes should entrepreneurs prepare for?
The replacement of an epidemic state by an epidemic emergency state means that some of the special tax preferences will soon cease to be available. This situation will therefore affect companies' current tax returns, including the deductibility of donations made to fight coronavirus.
As a consequence of turning an epidemic state into an epidemic state, the deductibility of certain donations made to fight coronavirus will only be available until the end of May 2022. 31 May is therefore the last day to make such a tax-deductible donation.
Until 31 May 2022, taxpayers can still benefit from CIT and PIT deductions for the following donations:
Cabinet's decision to revoke the state of epidemic on 16 May means that the following tax exemptions and reliefs will not be available as of the dates indicated below:
Until the end of the tax year in which the epidemic state is cancelled, i.e. until the end of 2022, an increase in the limits for certain PIT exemptions for allowances paid to employees will continue to be in force, i.e., for example, downtime allowances granted in connection with the COVID-19 epidemic shall continue to be tax-free.
Some of the special tax preferences have been retained until the state of emergency is revoked. These solutions include: