List: International Tax Cuts & Emergency Plans Due to COVID19 Outbreak

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Posted by Andreas Hellmann on Wednesday, March 18th, 2020, 3:38 PM PERMALINK

Due to the COVID-19 outbreak many countries around the world are enacting tax cuts and emergency plans to support their struggling economies. 

Below is a list of examples of emergency tax cuts, plans, and suspensions from all over the world. We will be continuously updating this collection.  If you have another example to add, please send it to ckazakou@atr.org.  

You can also find a list of how the US is suspending Rules and Regulations due to COVID-19 here

Emergency Tax Cuts and Plans list:

Italy enacts tax relief to cushion Coronavirus emergency
 

Italy’s Economy Minister, Roberto Gualtieri, announced that the government will adopt measures costing EUR 3.6 billion (USD 4 billion) to help the economy. Specifically, a tax credit will be granted to companies that suffer a 25% fall in revenues. Additional funds are also provided to Italy’s health service.

Indeed, the decree provides, among other measures, to increase the guarantee fund for small and medium businesses with a priority, for 12 months, to grant a credit to businesses operating in red zones, encompassing the agri-food sector. - MNE Tax (03/02/2020)

Japan – Extended Tax Filing Deadline, Other Government Steps Due to COVID-19
 

The National Tax Agency has released the announcement that filing and payment due dates for individual income tax, individual consumption tax, and gift tax for 2019 will be extended by one month to April 16, 2020 due to the spread of Covid-19. - KPMG (03/02/2020)

Greece Moves to Help Business in Coronavirus Affected Areas

Greece will suspend for four months the payment of sales tax amounts that were to due to be paid by the end of March, Finance Minister Christos Staikouras announces in Athens. Suspension also for four months of payment of outstanding debt obligations. Next week’s Eurogroup meeting must immediately take concrete initiatives to tackle the negative effects of the virus on growth and public finances - BloombergTax (03/09/2020)

Germany Moves to Slow Virus With Empty Stadiums, Furlough Pay
 

Merkel’s coalition to invest 12.4 billion euros until 2024. Aid for furloughed workers to be expanded until end of 2020. Should Germany enter a serious crisis, its response would dwarf a proposed cut in the so-called solidarity tax by 5 billion euros ($5.7 billion) this year, Scholz told RND newspaper consortium.- BloombergTax (03/09/2020)

Denmark Grants $20 Billion in Tax Breaks to Firms Hit by Virus

Denmark’s government will grant tax breaks to businesses affected by the coronavirus as part of a series of measures worth $20 billion. - BloombergTax (03/10/2020)

Thai Cabinet Approves Phase One of Covid-19 Stimulus Package

The package includes 180b baht ($5.7b) of soft loans from Government Savings Bank and the Social Security Fund, Finance Minister Uttama Savanayana says in a briefing in Bangkok. 
- A cut in the withholding tax to 1.5% from 3% during April to September
- Doubling the tax benefit for investment in long-term mutual funds -- so-called super savings funds to 400,000 baht.
- BloombergTax (03/10/2020)

UK Government announced tax deferral measures

The government announced tax deferral measures and freezes on business property taxes for retail, leisure, and tourism to reduce the economic impact of the coronavirus.

The budget also contained promises to: Keep the corporate tax rate at 19%. Reduce the lifetime limit of entrepreneurs’ relief—which allows business founders to pay 10% capital gains tax, less than the usual rate, when they sell their businesses. Freeze fuel duty for the 10th consecutive year. Get rid of value-added tax on digital reading materials and female sanitary products. Freeze all alcohol duties. Make it easier to access tax-free child care.- BloombergTax (03/11/2020)

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Indonesia Eases Tax for Individuals, Cos to Counter Virus Impact

Government will waive income tax for individuals for six months as it seeks to boost purchasing power and counter an economic slowdown worsened by the coronavirus outbreak. - BloombergTax (03/11/2020)

Coronavirus: Macron announces drastic measures in France

When it comes to employees, the French leader announced the implementation of an “exceptional and massive mechanism of partial unemployment”. For companies, it will be possible to postpone “without justification, without formality, without penalty [the] payment of contributions and taxes due in March."- Euractiv (03/13/2020)

Spain closes tax office on coronavirus epidemic

Spain has announced VAT and other tax payment holiday for small businesses who apply for relief for the coronavirus (Covid-19) outbreak. The scheme is not available for large businesses (above €6m turnover) or if the Value Added Tax due is above €30m. - Avalara (03/15/2020)

UK Extends Property Tax Relief for a Year to Virus-Hit Sectors
 

The UK government is extending business property tax waivers to all companies in the retail, hospitality, and leisure industries as part of a multi-billion pound rescue package for businesses affected by coronavirus. - Bloomberg (03/17/2020)

Norway may cut 12% reduced VAT rate to 8%

The Norwegian government is said to be considering a cut to the 12% reduced VAT rate to 8% for the duration of the coronavirus crisis. The rate applies to cinema admission, public transport, hotel accommodation services, entrance to cinemas, museums and amusement parks. - Avalara (03/17/2020)

Belgium delays VAT filings & payments on coronavirus worries

The Belgian authorities have confirmed that they will allow companies to delay the filings by over two weeks and payments by two months. It had already offered an application process for companies needing delays due to COVID-19 outbreak. - Avalara (03/18/2020)

Netherlands COVID-19 VAT reliefs

The Dutch tax agency has published details of a range of Value Added Tax easements for businesses during the coronavirus epidemic. Other taxes will have similar easements. Dutch VAT easements include:Businesses may apply for delayed VAT payments if they can show hardship as a result of the crisis. The tax office may cancel any penalties or interest for any late payments. This is done as soon as the application is received. Late penalty interest will be reduced from 4% to 0.01% from 1 June if found delay not related to crisis. Open VAT assessments will be amended if it appears VAT should be less due to the pandemic. Extra VAT relief on customer bad debts will be granted if related to crisis. - Avalara (03/18/2020)

Photo Credit: Riley Kaminer

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