Tax authorities around the world are announcing measures to minimise the effect of cashflow problems on taxpayers. While the position is fluid and the details are subject to change, here is a summary of the key proposals from countries around the world.
If you have operations overseas and are experiencing issues with your tax payments please speak to your usual Crowe contact.
Cashflow assistance for businesses
Their is also administrative relief for certain tax obligations including an opportunity for businesses to defer their tax payments for up to four months.
As at 19 March the Austrian tax authorities have indicated companies will receive the following help with payments:
Government guarantees are available for loans made to businesses in certain key sectors.
A number of measures have been implemented and the key ones include:
All of the above require the taxpayer to provide evidence that the reasons for the payment difficulties are COVID-19 related.
View Crowe MacKay's update on COVID-19: Federal Aid Update.
The French Revenue authorities have announced:
In summary some of the key measures include:
Companies are advised to engage at the earliest opportunity with the tax authorities if they expect to experience difficulties paying taxes.
Businesses, other than SMEs, who are experiencing cash flow or trading difficulties have been advised to contact the Collector-General’s office or engage directly with their branch contacts.
The government will keep the situation under review.
Read the full update on Crowe Ireland’s website.
Italy has offered a range of tax reliefs for businesses.
These are aimed mainly at SMEs - see below for a five point overview:
The Kenya government on 25 March 2020 has issued a range of measures to relieve businesses and its citizens during the SARS-CoV-2 (COVID-19) pandemic.
The measures aim to protect jobs, provide certainty to employees and employers, businesses and general public.
The government announced a Second Economic Stimulus Package 2020 (ESP2) themed Prihatin Rakyat.
The Dutch government has announced a number of measures to limit the financial and economic consequences of the coronavirus for businesses. For a summary of the measures that currently apply please take a look at the Crowe Peak website: Coronavirus: Dutch fiscal and financial measures for companies.
The government has announced further measures to support the country during the COVID-19 crisis.
Further details are available on Beehvie.govt.nz.
Companies affected by the virus pandemic will also be able to count on:
Support for employees
Singapore has introduced a stabilisation and support package.
Companies will receive a 25% corporate tax rebate for the year of assessment 2020. The rebate will be capped at $15,000.
Relief measures that will be made available in South Africa.
Thailand's Cabinet approved a stimulus package on 10 March 2020 to help cushion the impact of the COVID-19 outbreak on its economy.
Some of the key tax measures include:
SMEs that take part in debt restructuring programmes will be able to claim a 150% deduction of interest expenses.
HMRC has a set up a helpline with up to 2,000 experienced call handers to support businesses and self-employed people who are concerned about not being able to pay their tax due to coronavirus (COVID-19).
HMRC will discuss your specific circumstances to explore:
It is recommended that businesses contact HMRC at the earliest opportunity. Our expectation is that HMRC will request that businesses should demonstrate they have considered all other sources of funding prior to agreeing to payment of tax by instalments.
Having basic metrics available such as a record of recent financial performance and staff attendance could prove valuable in demonstrating the difficulties are attributable to the virus.
On 20 March 2020 it was announced:
On March 27, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The law provides significant relief and opportunities. Regulatory guidance on implementing the law and addressing questions that arise will be highly anticipated in the days ahead. The highlights of provisions affecting businesses and employers can be found on the Crowe US website.
COVID-19 related webinars
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