Tracking Economic Relief Plans Around the World during the Coronavirus Outbreak

Jump to Table of Country-by-Country Responses

Countries around the world continue to implement emergency taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. measures to support their economies during the coronavirus (COVID-19) crisis.

Providing tax relief to the people and companies that are most affected, until the emergency abates, is welcome. Countries should consider tax relief measures because the health issue is creating a substantial economic shock. Taxes that require regular payments will impact the liquidity of businesses and households.

Therefore, governments should consider fiscal relief as a way of minimizing the economic impact from the health crisis.

As policymakers navigate this crisis, they should hue to the following principles:

• Tax relief should be broad-based.
• Tax relief should be in keeping with good long-term policy. Distorting markets today will undermine the long-term recovery.
• Using refundable tax credits today should be designed to bring forward future credits or deductions.
• Policymakers should also use this opportunity to fix distortive tax policies that could impede recovery efforts.

The countries in the table below implemented or plan to implement tax relief for businesses and households affected by this health crisis. Note that all monetary amounts in this post are national currencies.

Jump to Full Country-by-Country Breakdowns

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Algeria Coronavirus Tax Relief

Algeria has extended the deadlines for the provisional installments of corporate tax, consumption tax, and individual income tax to May 20, except for companies that report to the Large Taxpayer Department with deadlines that have not been extended.

Australia Coronavirus Tax Relief

Australia has announced federal relief proposals that total around $320 billion (AUD). State governments have also announced relief packages and in some cases deferrals of payroll taxA payroll tax is a tax paid on the wages and salaries of employees to finance social insurance programs like Social Security, Medicare, and unemployment insurance. Payroll taxes are social insurance taxes that comprise 24.8 percent of combined federal, state, and local government revenue, the second largest source of that combined tax revenue. payments (Australian Capital Territory, Queensland, Victoria, Western Australia).

The federal relief package includes direct payments to citizens. For job seekers impacted by the downturn, there will be payments of $550 every two weeks in addition to current income support payments. The government expects these payments to cost $14.1 billion. There is also a broad-based, $750 one-time payment to eligible recipients—this is expected to cost $4 billion. Individuals will also be able to temporarily access up to $10,000 from certain retirement accounts.

Through a new wage-subsidy scheme, employers will be able to receive a $1,500 payment per retained worker every two weeks. Businesses qualify for the subsidy if their revenues have fallen by 30 percent (50 percent for businesses with revenues greater than $1 billion) in the relevant time period relative to a year earlier. The subsidy will be in place for six months.

The aid packages provide relief to businesses through subsidized loans and central bank lending, and temporary relief from insolvency laws, immediate expensing (instant asset write-off), and accelerated depreciationDepreciation is a measurement of the “useful life” of a business asset, such as machinery or a factory, to determine the multiyear period over which the cost of that asset can be deducted from taxable income. Instead of allowing businesses to deduct the cost of investments immediately (i.e., full expensing), depreciation requires deductions to be taken over time, reducing their value and discouraging investment. .

Immediate expensing will now be available for assets costing less than $150,000 on a per-asset class basis. Eligibility is expanded to include businesses with annual revenues of less than $500 million (the current cap is $50 million). This measure applies until the end of June.

Accelerated depreciation will be provided temporarily for businesses with less than $500 million in revenues. In addition to current depreciation deductions, the policy allows an additional 50 percent deduction but only applies to assets purchased after March 12, 2020 and put into service by June 30, 2021.

Businesses subject to the Goods and Services Tax (GST) can apply for deferred payments if they are facing cash-flow challenges. Also, businesses that receive credits or refunds under the GST can switch from quarterly to monthly filings to speed up their refunds. Importers may also apply for the deferred GST scheme.

Two states—South Australia and Western Australia—announced land tax relief for landlords who have provided rent relief to tenants in response to the coronavirus outbreak.

Austria Coronavirus Tax Relief

Austria is reducing income and corporate tax prepayments, deferring tax payments, allowing taxes to be paid in installments, reducing or providing relief from late tax payments, and suspending tax audits. For businesses that need to reduce working hours, labor subsidies are being provided. There is also direct aid being provided to sole proprietorships and family-owned businesses in addition to the tourism and cultural sectors.

For corporate tax payments, taxpayers can apply to have their advance payments reduced to zero or to receive a payment deferral or an installment plan. Applications can be submitted until October 31, 2020.

Value-added tax (VAT) payments can also be deferred on a case-by-case basis, and payments are not necessary while an application for deferral is pending with the tax authorities. The VAT payment due on June 30 is delayed until August 31. VAT is temporarily eliminated on protective masks (currently taxed at the standard VAT rate of 20 percent).

Belgium Coronavirus Tax Relief

Belgium has adopted several measures to delay tax payments. Corporate and income tax payments deadlines are extended for an additional two months. There is also relief for late payments for tax liabilities prior to March 12. For businesses that demonstrate that payment difficulties are linked to the coronavirus outbreak, the government is providing a VAT payment plan that gives relief from penalties. A similar payment plan is available for payroll tax liabilities.

VAT filings have been delayed by two weeks and payments have been delayed by two months. The April VAT returns payment deadline was extended from April 15 to July 15.

Businesses in good standing may receive early refunds from February’s tax filing by April 30. In addition, businesses will benefit from an increased tax credit for prepayments made in Q3 and Q4 of 2020 for the assessment year 2021, provided there is no dividend distribution between March 12, and December 31, 2020 and there is no capital reduction or repurchase of shares.

Bulgaria Coronavirus Tax Relief

Bulgaria has extended deadlines for business taxes from March 31 to June 30. Personal income tax returns filed by traders and sole proprietorships will get an extension from April 30 to June 30. Individuals may be eligible for a 5 percent deduction if they file and remit their taxes by May 31. Businesses that have been most severely hit by C-19 measures or are suffering revenue losses greater than 20 percent compared to March 2019 are eligible for a 60 percent wage-subsidy for their employees.

Canada Coronavirus Tax Relief

Canada’s federal government is deferring tax payments for individuals and businesses. Any income tax amounts owed on or after March 18 and before September can be deferred until after August 31. In addition, post-assessment sales taxA sales tax is levied on retail sales of goods and services and, ideally, should apply to all final consumption with few exemptions. Many governments exempt goods like groceries; base broadening, such as including groceries, could keep rates lower. A sales tax should exempt business-to-business transactions which, when taxed, cause tax pyramiding. or income tax audits for small and medium businesses will be suspended for the next four weeks.

The finance ministry introduced a 75 percent wage-subsidy to employers for up to 12 weeks if their revenue has dropped by at least 15 percent compared to the same month last year (or compared to the average revenue for January 2020 and February 2020). The subsidy applies to the first $58,700 (up to $847 a week) of an employee’s salary. This subsidy will co-exist with a previously introduced temporary wage subsidy for eligible small businesses worth 10 percent of remuneration over three months.

Canada’s relief package also includes boosting its health system and giving direct support to households and businesses. Federal Goods and Services Tax (GST) filings and payments due in March-May are postponed until June 30.

Chile Coronavirus Tax Relief

In Chile, the government has responded to the coronavirus by announcing a 350 million Chilean UF stimulus plan. President Sebastian Pinera has outlined a number of tax measures in response to the coronavirus outbreak. The monthly provisional payments of corporate income taxes are suspended until June 30, and payments for VAT and income taxes have been postponed until June 30 for companies with annual sales of less than 350,000 UF. Qualifying small and medium-sized businesses will receive an early tax refundA tax refund is a reimbursement to taxpayers who have overpaid their taxes, often due to having employers withhold too much from paychecks. The U.S. Treasury estimates that nearly three-fourths of taxpayers are over-withheld, resulting in a tax refund for millions. Overpaying taxes can be viewed as an interest-free loan to the government. On the other hand, approximately one-fifth of taxpayers underwithhold; this can occur if a person works multiple jobs and does not appropriately adjust their W-4 to account for additional income, or if spousal income is not appropriately accounted for on W-4s. in April. April’s tax payments for individuals with properties assessed less than 4 million UF have been postponed.

China Coronavirus Tax Relief

China has reduced its VAT from 3 percent to 1 percent for the cash accounting program for small businesses until the end of May. It also cut VAT on medical, catering, accommodation, hairdressing, and laundry services as well as on masks and protective clothing. Interest charges on business loans below 1 million Yuan to small enterprises will be exempt from VAT (financial services are subject to VAT in China). Importers into special zones may delay payments on import VAT and duties until the end of 2020. The monthly VAT filings and payments for May have been delayed from May 15 to May 22.

China has approved about 1.3 trillion Yuan to boost its economy after the coronavirus disruption; this includes epidemic prevention and control, aid for unemployment insurance, and infrastructure for its public health system. Qualifying businesses can carry their 2020 losses forward for eight years (up from five years).

Czech Republic Coronavirus Tax Relief

The Czech Republic is waiving penalties and default interest for income tax payments until July 1. Late filing waivers for all taxes will be case-by-case. There is also a general waiver of penalties with respect to VAT statements.

Applications will also be considered for businesses that wish to cancel income tax prepayments, defer tax payments (for VAT or income tax), or extend their filing deadline for corporate income taxA corporate income tax (CIT) is levied by federal and state governments on business profits. Many companies are not subject to the CIT because they are taxed as pass-through businesses, with income reportable under the individual income tax. returns.

Payroll tax and labor market contributions payment deadlines in April through June are extended four months. If a business’s original deadline was July 10, it now is November 10.

Losses incurred in 2020 can now be carried back for two years (previously no loss carrybacks).

The government announced a new package that includes wage-subsidies for employees under quarantine, if a business is closed due to government order, or if a business experiences C-19-related economic difficulties. It also includes new loans and loan guarantees.

Denmark Coronavirus Tax Relief

Denmark announced three tax measures to boost business liquidity. The deadline for VAT payments has been extended (different deadlines depending on firm size) and companies will be granted four additional months to pay their labor contributions originally due through the end of June. The government is also lifting the ceiling on businesses’ tax accounts so that corporations won’t have to pay negative interest rates when placing cash in the bank. That limit is rising from the current level of DKK 200,000 to DKK 10 million until the end of November 2020.

Workers who are sent home will receive 90 percent wage support for three months. The government is also covering sick leave costs from the first day of leave.

Businesses with an annual revenue of less than DKK 5 million that paid VAT for the second half of 2019 in March 2020 and businesses with an annual revenue between DKK 5 million and DKK 50 million that paid VAT for Q4 2019 in March 2020 may be refunded their VAT payment as an interest-free loan. VAT-exempted businesses subject to payroll tax under the so-called “method 4” (e.g., passenger transport companies, dentists, and doctors) that paid payroll tax for Q1 2020 no later than April 15 may also have the amount of tax returned to them as a loan. In total, the interest-free loans may amount to DKK 35 billion and must be repaid by April 2021.

R&D credit payments for loss-making businesses are being advanced so that 2019 tax credits will be paid in June 2020 instead of in November 2020.

Estonia Coronavirus Tax Relief

Estonia is suspending interest penalties on any late tax payments until the end of the virus-related state of emergency (a rate of 0.03 percent per day, down from today’s 0.06 percent per day, will apply after the state of emergency is lifted). There is also a VAT payment holiday until May 1.

Between March and May, there will be no minimum monthly base for employers’ social tax (minimum monthly base is currently at €540). There is a 70 percent wage-subsidy (capped at €1,000 per month).

Estonia also decided to reduce excise duties on diesel, electricity, and natural gas.

European Union Coronavirus Tax Relief

The European Union has provided fiscal support to member countries in the amount of €540 billion. This includes funding for countries to support health-related spending, financing for small and medium-sized businesses, and a temporary loan mechanism (SURE) to support short-time work programs in the EU.

VAT has been waived on imports of medical equipment including testing kits, protective equipment, and ventilators.

The EU has also provided a temporary framework for state aid measures. Member countries that are providing specific support to businesses and sectors have temporary flexibility for targeted measures relative to the state aid rules that would otherwise apply.

Finland Coronavirus Tax Relief

Finland is delaying corporate income tax payments. The government is also supporting loan guarantees for small and medium-sized businesses. The interest rate for late business tax payments is reduced from 7 percent to 4 percent. Private-sector pension payments will be delayed and reduced.

Finland introduces VAT loans, enabling businesses to apply for a temporary refund of VAT payments they have made on their returns in 2020. There will be an interest charge of 3 percent.

France Coronavirus Tax Relief

The government is allowing companies to suspend payments of some social charges and taxes and is activating state-subsidized short-time work schemes. The next installment of direct taxA direct tax is levied on individuals and organizations and cannot be shifted to another payer. Often with a direct tax, such as the personal income tax, tax rates increase as the taxpayer’s ability to pay increases, resulting in what’s called a progressive tax. payments is being delayed for three months. Additionally, no new tax audits will be started during the “lockdown period.” VAT refunds have been accelerated and there is a temporary VAT discount for March and April VAT returns for businesses facing difficulties.

France has also bankrolled a €1 billion solidarity fund for affected businesses. In total, France has deployed a €45 billion relief package with an additional €300 billion in loan guarantees.

Germany Coronavirus Tax Relief

Germany will make it easier for companies to claim subsidies to support workers on reduced schedules to counter the effects of the pandemic. This is the same measure which was used to help prevent large-scale layoffs during the 2008 financial crisis.

Tax relief measures include broad deferral options and tax baseThe tax base is the total amount of income, property, assets, consumption, transactions, or other economic activity subject to taxation by a tax authority. A narrow tax base is non-neutral and inefficient. A broad tax base reduces tax administration costs and allows more revenue to be raised at lower rates. reduction for trade taxes. Tax deferrals will be granted without interest, but taxpayers must apply before December 31, 2020. Late payment penalties are waived through the end of 2020. Advance payments for income tax and corporate tax are delayed until June 10. Trade tax advance payments are delayed until May 15. The 2019 annual VAT return deadline has been extended to May 31.

The government has also discussed implementing a reform to the solidarity tax (a 5.5 percent surcharge on high-income earners) in 2020 rather than in 2021 as previously planned.

Germany is also providing up to €50 billion in support for self-employed and small and medium-sized businesses, and up to €500 billion in liquidity measures for affected businesses.

One hundred percent of social security contributions for lost hours of short-time employees will be covered by the labor agency. VAT for catering food services has been temporarily reduced from 19 percent to 7 percent during the period of July 1, 2020 through July 1, 2021.

Greece Coronavirus Tax Relief

Greece has suspended VAT payments due at the end of March for four months, and VAT payments due before April 30 are postponed to August 31 for businesses affected by the coronavirus outbreak. Companies’ social security contributions will be suspended until June 30. VAT reduction will be 6 percent from 24 percent for products related to preventing spread of coronavirus. The sales list filings for 2019 have been delayed to June 30.

On March 30, Greece passed a legislative act that will give a 25 percent reduction of assessed liabilities of tax payments with deadlines in the period of March 30-April 30, not including VAT or withholdingWithholding is the income an employer takes out of an employee’s paycheck and remits to the federal, state, and/or local government. It is calculated based on the amount of income earned, the taxpayer’s filing status, the number of allowances claimed, and any additional amount of the employee requests. . It allows for refunds of advance tax payments. It will also give VAT exemption for donations made to the government in support of relief efforts. Greece will allow VAT payers to withhold 25 percent of their VAT due in April if they do not lay off employees. Greece extended the deadline for payment of tax debts to April 21, with a corporate deduction of 25 percent of the tax debt owed for businesses affected by the pandemic, and the deadline for employers’ social security contributions’ was extended to April 21. Qualifying businesses affected by the coronavirus that meet their 2020 first trimester VAT obligations may offset 25 percent of their VAT paid against tax debt or repayment scheme installments due from May 1 onwards.

Hungary Coronavirus Tax Relief

Hungary is providing relief for social security contributions. Employers will not be required to pay the employer side of social security contributions (17.5 percent + 1 percent) from March through June. Employees will only be liable for their 4 percent health-care contribution rather than the total 18.5 percent social security contribution. The 2020 projected budget deficit increased from 1 percent to 2.7 percent of GDP. The media tax has been suspended. Hungary is funding more than HUF 2 trillion in loans for businesses. The deadlines for certain taxes are extended to September 30; this includes corporate income tax, “Robin Hood tax,” local business tax, innovation contribution, and small business tax. As of July 1, the social tax will be reduced from 17.5 percent to 15.5 percent. Hungary has accelerated VAT refunds for small and medium-sized businesses so businesses can expect refunds within 30 days from the filing date instead of 75 days. On May 1, Hungary introduced a COVID-19 emergency bank tax which is a one-time charge in addition to the existing banking tax. As of May 1, Hungary has implemented a retail turnover tax on e-commerce that is levied in a scale from 0.0 percent to 2.5 percent depending on retailer’s annual sales.

Iceland Coronavirus Tax Relief

Iceland is postponing payment deadlines for social security taxes and public levies. Taxes that were originally due on March 16 were delayed until April 15 and then further delayed until May 15. No penalty or surcharge will apply if the payments are made by May 15.

Iceland is providing businesses with relief by postponing VAT payments; companies may apply to postpone their VAT payments until 2021.

Unemployment benefits have been expanded to include part-time employees. On March 30, Iceland passed legislation that allows employers to postpone deadlines for up to three payments of social security tax and withheld public levies at source in the period of March 1–December 1 to the new deadline of January 15, 2021. It also allows businesses to postpone their real estate taxes up to three payments.

The government will give 100 percent VAT refunds through December 31 for the building sector. The bed-night tax on overnight stays is suspended from April 1, 2020 through December 31, 2021.

India Coronavirus Tax Relief

India has provided a fiscal support package of 150 billion rupees focused on the health system’s response to the outbreak. State-level fiscal support has also been announced. Tax filing has been postponed from March 31 to June 30 for income tax returns and goods and services tax returns. There is also a reduced interest rate for tax payments made by June 30, and late filing penalties are waived. Goods and services tax (GST) deadlines for March, April, and May are extended to the end of June.

India is also working on a relief package for the airline industry including deferring aviation fuel tax. Refunds for Goods and Services Tax and customs duties will be accelerated. Companies’ income tax refunds up to INR 500,000 will be accelerated. Deadline extended for FATCA and CRS returns from May 31 to June 30. The deadline for March’s provident fund contributions has been extended from April 16 to May 15.

Indonesia Coronavirus Tax Relief

Indonesia has waived income tax for individuals in the manufacturing sector with income below 200 million rupiah for six months as it seeks to boost purchasing power. The deadline for tax amnesty program submissions was extended to April 30. A second stimulus package will allow firms to delay payments of corporate and income tax on the sale of imported goods. These measures went into effect April 1^st and will last for six months. Also, to encourage tourism to certain destinations, a 10 percent hotel and restaurant local tax will be lifted for six months, with the central government compensating local governments for the expense. Qualifying businesses in the manufacturing sector and export-oriented companies will receive advanced VAT refunds from April to September’s tax period, and a 30 percent reduction of corporate income tax installments is available for those businesses. Indonesia’s stimulus package is about 33.2 trillion rupiah.

The corporate income tax rate will be cut from 25 percent to 22 percent for the 2020 and 2021 tax years, and to 20 percent beginning in the 2022 tax year. Stock exchange tariffs are lowered to 3 percent. The import tax payments are deferred for six months for certain businesses. The VAT, income tax, and transaction tax on electronic financial transactions will be imposed on nonresidents.

Iran Coronavirus Tax Relief

In Iran, employees can defer tax payments for the next three months, and the 3 million poorest Iranians will receive an additional cash subsidy. There will be additional tax relief for small to medium-sized enterprises. The 2019 fourth quarter VAT returns were postponed to April 19 and qualifying businesses may apply to extend the deadline further to May 20. Iran has announced a support package worth about 10 percent of GDP in response to the coronavirus.

Ireland Coronavirus Tax Relief

Ireland has instituted a broad relief program amounting to €6.8 billion. Relief includes waiving interest on late tax payments and a suspension of the relevant contracts tax. For small and medium-sized businesses, interest on late payments of January-February VAT and February-April Pay-As-You-Earn liabilities are suspended until further notice; returns must still be filed on time. Broad lending authority and specific relief for temporary layoffs is also included. Employers who temporarily lay off or reduce the hours of their employees due to the crisis will be eligible to get a refund from the tax authority for €410 per week for up to 12 weeks. The government is also providing sick pay of €350 per week for two weeks for qualifying individuals. Unemployment benefits have been expanded from €203 per week to €350 per week for individuals who have lost their jobs due to the pandemic. For businesses affected by the pandemic, rates payments will be deferred until May 31.

Israel Coronavirus Tax Relie

Israel has allocated NIS 80 billion to respond to the pandemic. NIS 41 billion will go to guaranteed loans, grants, and other measures for small and medium-sized businesses. Unemployment benefits are expanded by waiving certain requirements.

Israel also delayed VAT payments for 10 days, from the scheduled March 16 date to March 26 for monthly filers, and from April 15 to April 27 for bimonthly filers. The deadline for income tax filing and payments online is extended to July 30 and offline to June 30. Parliament approved a NIS 500 grant for families with children, the elderly, and people with disabilities. Unemployment benefits have been expanded and certain requirements have been diminished.

Italy Coronavirus Tax Relief

In Italy, tax deadlines have been extended for residents and companies in the so-called “red areas.” Also, all tax payments related to social security contributions, assessment, income, and wealth due between February 23 and April 30 were extended until May 31, and tax credits will be granted to companies that suffer a 25 percent drop in revenues. In addition, businesses will receive a 50 percent tax creditA tax credit is a provision that reduces a taxpayer’s final tax bill, dollar-for-dollar. A tax credit differs from deductions and exemptions, which reduce taxable income, rather than the taxpayer’s tax bill directly. for sanitation expenses, such as daily cleaning services, masks, and other precautions that help stop the spread of new coronavirus.

Banks have been given options to take some loss deductions and convert them to tax credits.

On March 16, Italy announced a €25 billion package in response to the coronavirus, with €10.3 billion going to boost unemployment benefits and assist the self-employed with a €600 allowance for the month of March. It also allows parents to claim €600 for babysitting costs, or they may apply to extend parental leave for 12 days. €3.2 billion is dedicated to the Italian health-care system, which will cover hiring an additional 1,000 doctors.

Italy also has announced that April-May VAT returns may be delayed until June 30 for businesses with a decline in revenue since March, specifically small businesses with at least a 33 percent decline and large businesses with at least a 50 percent decline. As of April 8, those same businesses may also defer payments of VAT, social security, and welfare contributions, and withholding tax on wages and salaries until June 30.

And Italy has suspended loan repayments by small and medium-sized businesses through September 30. A €100 bonus will be given to employees who continue to work at their workplace during the pandemic. Businesses are given a 60 percent tax credit on commercial rents. The mandatory use of the Italian Revenue Agency’s e-invoicing platform has been put off until December 31 from the original date of October 1.

Japan Coronavirus Tax Relief

Japan passed legislation that gives a one-year grace period for national tax payments of corporate and individual taxpayers with payment deadlines between February 1, 2020 and January 31, 2021, if the taxpayer’s revenue has decreased by 20 percent compared to the previous year. Japan gives relief to companies whose sales have decreased at least 50 percent for a one-month or longer period by permitting the cancellation of taxable company status for consumption taxA consumption tax is typically levied on the purchase of goods or services and is paid directly or indirectly by the consumer in the form of retail sales taxes, excise taxes, tariffs, value-added taxes (VAT), or an income tax where all savings is tax-deductible. purposes. Japan has allocated ¥108.2 trillion in response to the pandemic and extended the deadline for filing and payment of income tax, gift taxA gift tax is a tax on the transfer of property by a living individual, without payment or a valuable exchange in return. The donor, not the recipient of the gift, is typically liable for the tax. , and consumption tax for the self-employed from mid-March to mid-April. Businesses with stated capital of ¥1 billion or less can claim a tax refund for tax loss carrybacks.

Latvia Coronavirus Tax Relief

Latvia has extended the VAT reclaim deadline for non-EU countries, from June 30 to the end of September. Latvia is granting tax delays including VAT payments to provide relief for businesses, which also must apply to delay their taxes until June 30. Businesses with a decrease in income due to the coronavirus that qualify can have tax payments deferred or staggered for up to three years, and the government will cover 75 percent of salaries of workers experiencing downtime because of the coronavirus from March 14-May 14.

Latvia’s support package is about €2 billion. VAT refunds are accelerated from the end of the tax year to within 30 days after the due date. Sick leave will be paid by the government from March 22-June 30.

Lithuania Coronavirus Tax Relief

Lithuania has delayed the corporate tax and filing deadline until March 30. Businesses can revise their corporate income tax calculations based on projections for 2020 rather than the previous year’s results. Personal taxes have also been delayed from May 4 to July 1. VAT payers can defer returns for up to one year with no interest or penalty. VAT payers affected by the coronavirus crisis may apply to write off all outstanding VAT.

A wage subsidy of at least 60 percent of salary is being provided to support workers whose hours have been reduced. The subsidy can go up to 90 percent for those sectors most impacted by the crisis.

Luxembourg Coronavirus Tax Relief

Luxembourg is allowing businesses to file requests for cancellation of the first two quarterly tax payments for 2020 (for corporate income and municipal business taxes), and there is a four-month deadline extension (for corporate income, municipal business, and corporate net wealth taxes) for all payments due after February 29, 2020. Businesses with financial difficulties can also postpone all VAT payments reaching back to the start of the COVID-19 crisis.

Malaysia Coronavirus Tax Relief

Malaysia is exempting accommodation services (including hotels) from the 6 percent services tax and providing sales tax exemptions and lifting import duties on equipment and machinery. The due dates for making installments of tax (due on April 15) were extended again, for one more month, to May 31, and the time for making monthly tax installment payments has been deferred for three months for small and medium-sized businesses s and for six months for companies in the tourism sector. The monthly tax installment payments to accompany CP500 form for March and May 2020 can be deferred without penalties. There is also relief provided in the form of deferment regarding estimated taxes reported on form CP204, for three months for small and medium-sized businesses and for six months for companies in the tourism sector. The deadline for submitting a CbCR has been extended (the new due date depends on the date when the report was originally due). Cash or in-kind donations to approved projects to address the COVID-19 pandemic are tax-deductible and can be applied against the gross business income.

Mexico Coronavirus Tax Relief

Mexico delayed deadlines for lawsuits in tax courts until April 19. The states of Nuevo León, Baja California, Colima, Durango, Mexico state, Jalisco, Hidalgo, Morelos, Puebla, Sonora, Quintana Roos, Zacatecas, as well as the federal district of Mexico City, have provided some form of tax relief and extended the deadlines for filing returns or paying taxes. The deadline to file individual tax returns for 2019 was extended until June 30. Social security payments can be deferred for up to 48 months and upon a 20 percent upfront payment for the employer quota and 100 percent of the worker quota with a monthly interest rate that ranges between 1.26 percent and 1.82 percent. Also, Value-Added Tax credit repayments will be accelerated; the current deadline is 40 days.

Netherlands Coronavirus Tax Relief

The Netherlands has created a blanket three-month delay for payroll, income, and corporate tax payments along with VAT. From April, the temporary deferral policy will also apply to tax on games of chance, insurance premium tax, the landlord levy, environmental taxes, coal tax, waste tax, tax on tap water, excise duties (on mineral oils, alcohol, and tobacco), and the consumption tax on non-alcoholic drinks. Late payments will face a reduced interest cost of 0.01 percent. From April 25, requests for a deferral of payment of longer than three months can be granted subject to certain conditions. These businesses are not to be assessed with a default penalty (for the late payment of tax) during the period beginning March 12 through to the date when the granted tax payment deferral ends. When companies receive and pay the preliminary tax assessment 2020 (CIT) and lower profits are expected in 2020, companies can amend the preliminary tax assessment and get a refund for the paid taxes.

No VAT will apply on the supply of medical staff for designated medical facilities and no VAT is required to be paid on medical supplies (relief supplies and equipment) that are provided free to health-care institutions, care facilities, and general practitioners.

The government is also providing support for businesses that see a 20 percent reduction in revenues, at 90 percent of wage costs. There is also a €4,000 compensation payment available to businesses that were forced to close temporarily, and an expansion of government guarantees for loans to small and medium-sized businesses.

New Zealand Coronavirus Tax Relief

New Zealand has announced the reintroduction of depreciation deductions for commercial and industrial buildings to encourage investment. In addition, the threshold for payment of provisional tax will be increased to NZ $5,000 to reduce cash-flow pressure on small firms. Taxpayers can choose to receive refunds for research and development tax credits one year early. Fines and penalties for late filing of Goods and Services Tax (GST) have been suspended. Also, a tax loss “carryback” rule will allow refunds of tax paid in a prior year. The rule will apply temporarily for tax losses in the 2020 and 2021 tax years and become permanent for future years. Tax losses can also be carried forward to help companies raise capital. The carryback and carryforward rules will be applied to all businesses, not only small and medium-sized businesses.

Two loan schemes to provide additional funding for businesses have been approved. For medium and larger businesses, loans of up to NZ $500,000 will be provided through retail banks. On May 1, a cash-flow loan scheme was announced for small businesses (50 or fewer full-time employees) for up to NZ $100,000. The loan amount is calculated as NZ $10,000 for an applicant plus NZ $1,800 per full-time employee. The loans are interest-free if repaid within one year and subject to 3 percent interest if taken for a longer period, with a maximum term of five years.

Norway Coronavirus Tax Relief

Norway has reduced the employee tax rate by 4 points for two months. Corporations will be allowed to deduct losses in 2020 to reduce tax payments in the two previous years. The reduced VAT rate (12 percent) will be temporarily lowered to 7 percent (originally lowered to 8 percent); this change is retroactive to January 1. From April 1 a 6 percent rate will apply until October 31. Tax payments for VAT and advanced tax payments for other businesses will be postponed. The first VAT return payments are deferred from April 10 until June 10. Net wealth taxA wealth tax is imposed on an individual’s net wealth, or the market value of their total owned assets minus liabilities. A wealth tax can be narrowly or widely defined, and depending on the definition of wealth, the base for a wealth tax can vary. payments will be reduced for those who own stock in loss-making companies. The tax on air passenger flights is suspended from January 1 to October 31. The deadline for filing corporate income tax returns for 2019 has been extended to August 31 from May 31.

Poland Coronavirus Tax Relief

Poland has extended the deadline for the new SAF-T VAT regime from April 1 to July 1. The government is also allowing accelerated VAT refunds. The personal income tax deadline is extended by one month, and businesses can apply to defer social security contributions for three months. Poland is offering VAT filers to apply for a liabilities write-off or a payment deadline extension. The corporate income tax filing and payment deadline has been extended until May 31. Corporate and individual taxpayers whose revenue in 2020 will be lower by 50 percent, when compared to 2019 revenue, can offset tax losses incurred in 2020 against their 2019 taxable income, subject to a ceiling of PLN 5 million loss.

Small and medium-sized businesses with a decline in economic turnover of at least 25 percent in any month after February 1, 2020 are eligible for a returnable subsidy with the possibility of redemption of up to 75 percent after 12 months, as long as employment is maintained. Large companies will receive financing in the form of loans or bonds, and preferential financing and investment in the form of equity instruments. Nevertheless, in order to be granted financial aid, the beneficial owner must be a Polish tax resident.

In addition to these changes, there is a roughly PLN 212 billion relief package aimed at supporting the economy and the health-care system.

Portugal Coronavirus Tax Relief

Portugal has suspended social security contribution payments for companies affected by the coronavirus outbreak. VAT and withholding tax payment schedules can be adjusted for businesses with less than €10 million in revenues in 2018 or a 20 percent reduction in revenues. February monthly VAT returns, due on April 10, were postponed to April 17 and associated payments were delayed to April 20 from April 15. Also, the deadline for filling of the monthly VAT return for March and April can be delayed till May 18 and June 18. There will be no late filing penalties or payment interest charges. The deadline to prepare and file the documentation adopted to comply with the transfer pricing rules was deferred until August 31.

Romania Coronavirus Tax Relief

Romania will suspend most tax audits, extended the deadline for an annual profits tax from March 25 to April 25, and sped up VAT refunds to help businesses. The government has declared that taxes with deadlines after March 21 will not be subject to penalties and late-payment interest until 30 days after the end of the state of emergency.

The government approved a “discount” for taxpayers that pay their profit tax for the first quarter of 2020 (due on April 25) on time. Large businesses will receive a 5 percent discount while a 10 percent discount will apply to small and medium-size businesses.

Also, during the period of the state of emergency and the consecutive 30 days, the requirement to pay VAT at the time of import for medicines, protective equipment, other medical devices or medical equipment and sanitary equipment used in efforts to combat the COVID-19 disease has been deferred.

Russia Coronavirus Tax Relief

Russia will allow small and medium-sized businesses operating in certain industries to defer all taxes for six months, except for VAT and social insurance payments (only for micro-enterprises). Russia is also providing tax holidays for taxes and social security contributions until May 1 for companies engaged in tourism and aviation industries. Also, the social insurance rate will be reduced from 30 to 15 percent for salaries exceeding the minimum wage. Small and medium-sized businesses will be granted a three-month grace period for rent payments to the government. Pharmaceutical and medical supplies and equipment will be exempted of import duties payments. A moratorium on tax audits until June 1 is expected to be implemented. Other tax measures include a 13 percent income tax rate on interest accrued on deposits exceeding 1 million rubles (USD $12,700). The government is considering a review of some double tax treaties to impose a 15 percent tax on dividends from Russia.

Singapore Coronavirus Tax Relief

Singapore has deferred corporate income tax payments for April-June for three months so payments that were due in April are now due in July. The self-employed were granted an automatic deferment of their income tax payments due in May, June, and July by three months. Also, an automatic extension was implemented for filing individual income taxAn individual income tax (or personal income tax) is levied on the wages, salaries, investments, or other forms of income an individual or household earns. The U.S. imposes a progressive income tax where rates increase with income. The Federal Income Tax was established in 1913 with the ratification of the 16th Amendment. Though barely 100 years old, individual income taxes are the largest source of tax revenue in the U.S. returns to May 31, originally due on April 18. Property taxA property tax is primarily levied on immovable property like land and buildings, as well as on tangible personal property that is movable, like vehicles and equipment. Property taxes are the single largest source of state and local revenue in the U.S. and help fund schools, roads, police, and other services. rebates will be given to commercial properties affected by the coronavirus, such as hotels, restaurants, and stores. Qualifying employers can get a grant of up to 75 percent (25 percent in the previous budget support) of their gross monthly payroll from October to December 2019, capped at SGD 4,600 per employee per month. Also, a corporate income tax rebate of 25 percent of tax payable, capped at SGD 15,000, was granted. Companies are provided an option to accelerate the tax depreciation claim for plant and machinery acquired for 2021 over two years: 75 percent of the cost in 2021 and 25 percent in 2022. Expenditures on renovation and refurbishment can benefit from an accelerated deduction in one year instead of over three years, as currently allowed. The foreign worker levy was waived for the month of April and a rebate of SGD 750 was granted for each work permit or S-pass holder. Goods and Services Tax (GST) payments due April 11 have been delayed to May 11. Goods and Services tax will remain at 7 percent in 2021, but it’s expected to increase to 9 percent sometime between 2022 and 2025.

Slovakia Coronavirus Tax Relief

In Slovakia, companies and individuals will receive an automatic tax payment deadline extension of up to three months.

Slovenia Coronavirus Tax Relief

Slovenia has adopted measures to delay tax filings and payments for businesses from March 31 to May 31. Businesses can also apply for a reduction in advance payments of corporate income tax.

Personal tax deadlines have been extended to June 30. VAT payments can be delayed upon application.

South Africa Coronavirus Tax Relief

South Africa is providing relief for individuals by increasing the Employee Tax Incentive (ETI) for those earning below R6,500 by giving an increase of up to R500 per month from April 1 through July 31. The government is allowing for accelerated payments of ETI reimbursements from twice-yearly to monthly. Small businesses can delay 20 percent of pay-as-you-earn liabilities for four months.

VAT has been waived for imports of “essential goods” during the crisis.

From April 1 through July 31, small and medium-sized businesses can defer portions of employee taxes and provisional tax payments.

South Korea Coronavirus Tax Relief

South Korea is cutting its VAT for small businesses by increasing the VAT registration threshold from KRW 30 million to KRW 48 million until the end of 2020. Tax incentives have been given for consumers replacing their cars early alongside a new tax deductionA tax deduction is a provision that reduces taxable income. A standard deduction is a single deduction at a fixed amount. Itemized deductions are popular among higher-income taxpayers who often have significant deductible expenses, such as state and local taxes paid, mortgage interest, and charitable contributions. on personal credit card spending between March 1 and June 30. The corporate tax returns filing deadline is extended from April 4 to May 4. Measures for individual taxpayers include increased income deductions from March 1-June 30 and deferred VAT liability for some businesses from April 24 to July 27.

A corporate income tax reduction has been approved for businesses in designated disaster zones connected to the outbreak. Tax reductions can be up to 60 percent for small businesses and up to 30 percent for medium-sized businesses and are limited to KRW 200 million.

Spain Coronavirus Tax Relief

Spain approved tax relief for small and medium-sized businesses and self-employed persons. Those businesses will be able to defer income, corporate, and VAT tax obligations for six months without interest. Spain has also adopted a proposal in response to the coronavirus outbreak that allocates a €100 billion line of guarantees for businesses.

Businesses with less than €600,000 in annual revenues can delay first-quarter VAT filing and payments until May 30.

Sweden Coronavirus Tax Relief

Sweden is allowing businesses to reclaim January-March’s tax payments for one year and then repay them. Sick leave will be paid by the government for April and May. Sweden’s aid package is SEK 300 billion. Businesses’ VAT payments and other outstanding taxes have been delayed by 12 months.

Switzerland Coronavirus Tax Relief

Switzerland has adopted an aid package of CHF 42 billion for funding reduced work schedules and loan programs for businesses. Within the aid, small and medium-sized businesses will be able to receive loans of up to CFH 20 million. Businesses’ social security contribution payments are deferred interest-free. The late penalty and interest fees associated with VAT will be waived through the end of 2020, although taxpayers must apply to have their payments deferred. The federal income tax payment is delayed; specific delays are determined by the Cantons.

The Swiss short-time work program has been expanded from three to six months, the waiting period has been waived, and employers are not expected to contribute for the lost work.

Thailand Coronavirus Tax Relief

Thailand‘s cabinet approved cutting the income withholding tax from 3 percent to 1.5 percent for six months, from April to September. It also doubled the tax benefit for investment in long-term mutual funds to THB 412,000.

Thailand is also extending the personal income tax filing deadline from June 30 to August 31, and direct aid will be given to 3 million people, at THB 5,000 per month for three months.

Monthly tax return submission deadlines have been extended for all businesses. Depending on the type of tax, deadlines in March or April are extended to May 15 or May 23.

Tunisia Coronavirus Tax Relief

Tunisia has extended the corporate income tax return filing deadline to May 31 except for companies paying the 35 percent tax rate. Tax audits have been suspended to May 31. VAT credit refunds will be accelerated, and payments will be made within 1 month. Companies that are affected by the coronavirus may have their tax debt postponed for up to seven years.

The circulation tax deadline has been postponed to the end of April.

Turkey Coronavirus Tax Relief

Turkey will give a six-month deferral on some tax and insurance premium payments to certain sectors, including retail and transportation. VAT declarations and payments that were normally due March 26 were extended to April 28. VAT returns for April-June have been delayed until June 27 for several sectors. The VAT on domestic air travel will be cut from 18 percent to 1 percent. Minimum payouts for pensioners will be increased and the government will make an early annual bonus payment to pensioners. Personal income tax deadlines were extended to the end of April.

Overall, a TL 100 billion fiscal package has been adopted in response to the outbreak.

Uganda Coronavirus Tax Relief

Uganda is allowing companies whose accounting year ends in September a two-month extension to file corporate tax returns. Individuals will benefit from a tax deadline extension for VAT, PAYE, local excise duty, and withholding; payments that were due March 15 became due March 31, and payments that are due April 15 are now due April 30. The deadline for the annual income and asset returns for businesses has been extended to July 1. Land and real estate taxes will not be levied between March 1 and April 30.

Ukraine Coronavirus Tax Relief

Ukraine is exempting imported medicine and medical devices and equipment needed to prevent the spread of coronavirus from its VAT. Penalties and interest for late submission of the unified social tax payment or its report were waived from March 1 until April 30. Late payment interest fees for VAT are waived until the end of May. The deadline for filing personal income taxes has been extended to July 1 and the payment deadline has been extended to October 1.

VAT on domestic electricity has been reduced from 20 percent to 10 percent, and the tourism tax will not be applied until the end of 2020.

United Kingdom Coronavirus Tax Relief

The United Kingdom waives business property taxes for retail, leisure, and tourism for 12 months to reduce the economic impact of the coronavirus outbreak. It also paused plans to expand rules on the employment status of contractors in the private sector. These so-called “off-payroll” rules aim to ensure that contract workers pay about the same tax and social security contributions as regular private sector employees. The UK is also expanding the Universal Credit and working tax credit by £1,000 and delaying £30 billion in VAT payments until June 30. A VAT reduction for e-books that was scheduled for the end of the year was implemented early on May 1.

Self-employed taxpayers can receive up to 80 percent of their average earnings, capped at £2,500 per month. This should benefit 95 percent of the self-employed earning up to £50,000 per year who have filed a tax return for 2019.

Phase two of Making Tax Digital has been delayed from April 1, 2020 to April 1, 2021; businesses have another year to have digital links available for VAT.

Import taxes on medical equipment have been waived.

United States Coronavirus Tax Relief

The United States has adopted a short-term expansion of paid sick leave. Tax payments have also been delayed from April 15 to July 15 without interest or penalties. The CARES Act legislation provides a $1,200 tax rebate for individuals and $2,400 for joint filers, with an additional $500 per child. Among many tax measures for businesses, the act includes a refundable payroll tax credit and allows employers to delay paying Social Security payroll taxes, with half-payment due December 31, 2021 and the rest due December 31, 2022. Also, $150 billion in relief funds will be distributed among the states.

Unemployment insurance payments have been increased and $450 billion in forgivable loans have been extended to small businesses to support payroll costs.

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