The purpose of the table below is to summarise the tax measures implemented by countries to combat the economic effect of the Covid-19 outbreak.
Due to the fast pace in which changes are announced by various goverments, the following table should be used as guidance only. Please click on each country name to verify if the tax measures have been updated.
Taxes paid is an immediate cashflow burden and to minimise taxes paid free cash to assist enterprises to maintain operations.
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|Australia||Delayed payroll taxes in some states, case-by-case deferrals for GST.
Faster refunds and credits for GST. Businesses can apply for GST 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.
Temporary immediate and accelerated expensing for business 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 12 March and put into service by 30 June 2021.
Relief payments to unemployed and other eligible individuals and subsidized loans for some businesses.
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. There is also a broad-based, $750 one-time payment to eligible recipient. Individuals will also be able to temporarily access up to $10,000 from certain retirement accounts.
|Austria||Prepayment reduction on personal and corporation tax.
VAT payment and deferment available by application; payment deadline of 30 June extended.
For corporate tax payments, taxpayers can apply to have their advance payments reduced to zero or to receive a payment deferral or an instalment plan. Applications can be submitted until 31 October 2020.
|Belgium||Corporate tax, Personal income tax, and VAT payment deadlines extended for two months.
There is also relief for late payments for tax liabilities prior to 12 March. 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.
|Bulgaria||Extended deadlines for business taxes from 31 March to 30 June. Personal income tax returns will get an extension from 30 April to 30 June.|
|Canada||Payment deferrals for individuals and businesses; audits suspended for four weeks. Any income tax amounts owed on or after 18 March and before September can be deferred until after 31 August. In addition, post-assessment sales tax or income tax audits for small and medium businesses will be suspended for the next four weeks.
Three-month wage subsidy of 10 percent of remuneration to small businesses.
|Chile||Tax payment deferral for small businesses with annual sales of less than $12 million.|
|China||VAT reduced from 3 percent to 1 percent for small businesses until the end of May; VAT cut on supplies related to the outbreak.
VAT cut on medical, catering, accommodation, hairdressing, and laundry services as well as on masks and protective clothing.
|Czech Republic||Tax deferrals on a case-by-case basis.
Waiving penalties and default interest for income tax payments. Late filing waivers for all taxes will be case-by-case. There is also a general waiver of penalties with respect to VAT statements.
|Denmark||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 tax returns.
Large companies will have 30 additional days to pay VAT, while all companies will be granted four additional months to pay their labour contributions. 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 sent home can receive a 90 percent wage subsidy for three months; expansion of sick leave coverage.
|Estonia||VAT payment holiday until 1 May.
Interest penalties on late tax payments delayed for two months.
|Finland||Corporate tax payments delayed.|
|France||Suspension of payments for some taxes; direct tax payments delayed for three months.
Wage subsidy for affected workers and a €1 billion solidarity fund for affected businesses.
|Germany||Case-by-case tax deferral options for businesses that apply by the end of 2020; advance tax payments delayed.
Tax base reduction for trade taxes.
Wage subsidies for affected workers as well as €50 billion in support for businesses and €500 billion in liquidity measures for businesses.
|Greece||VAT payments suspended for four months; social security contribution payments suspended until 30 June.
VAT reduced (from 24 percent to 6 percent) for goods related to addressing the outbreak.
|Hong Kong||Automatic extension of deadlines by three months for payment of Salaries Tax, tax under Personal Assessment and Profits Tax for the year of assessment 2018/19 that will be falling due in April to June this year. No application by taxpayers is required for the relief.
|Hungary||Employees temporarily only liable for a reduced share of social security contributions.
Employers temporarily not required to pay social security taxes.
|Iceland||Taxes originally due March 16 delayed to 15 April.|
|Indonesia||Six-month delay for income tax payments; corporate and income tax on imports delayed.
Hotel and restaurant tax temporarily suspended.
|Ireland||Interest on late payments for VAT and 'pay as you earn' (PAYE) suspended.
Reimbursement program for payments to workers temporarily laid off of €203 per week.
€3 billion aid package including loans and direct subsidies.
|Israel||VAT filing and payment delayed until 26 March.|
|Italy||Extended deadlines through 31 May for affected areas.
50 percent tax credit for sanitation expenses; banks have option to convert some loss deductions to tax credits.
|Iran||Three-month deferral for employee tax payments.
Cash subsidy to the three million poorest Iranians.
|Japan||Income tax, consumption tax, and gift tax deadlines delayed to April.|
|Latvia||VAT reclaim deadline extended to 30 September for non-EU countries.|
|Lithuania||Corporate tax and personal income tax delays.|
|Luxembourg||Four-month deadline extension for all payments due after 29 February (corporate income, municipal business, and corporate net wealth taxes).
Case-by-case review of cancellation requests for first two quarterly corporate tax payments for 2020.
|Malaysia||Exemptions from sales tax, services tax, and import duties.|
|Mexico||Tax lawsuit deadlines extended until 19 April.|
|Netherlands||Three-month delay for personal tax, corporate tax, and VAT.
Late payment interest fees reduced to 0.01 percent for personal tax, corporate tax and VAT
Subsidies for 90 percent of wages for distressed businesses.
|New Zealand||Corporate tax: Reintroduction of depreciation deductions for commercial and industrial buildings; threshold for provisional tax increased.|
|Norway||VAT and advanced tax payments delayed.
Employee payroll tax rate reduced by 4 percentage points for two months; net wealth tax reductions.
Two-year corporate tax loss carry back introduced.
Reduced VAT rate (12 percent lowered to 8 percent) retroactive to 1 January; air passenger flight tax suspended from 1 January to 31 October.
|Poland||Personal income tax declaration delayed by one month; ability to defer social security contributions for three months.
Delay of SAF-T guidelines for VAT from 1 April to 1 July.
|Portugal||Suspension of social security contributions for affected businesses; certain corporate tax deadlines extended three months.|
|Romania||Annual profits tax deadline delayed from 25 March to 25 April.
VAT refunds process sped up.
|Singapore||Corporate Tax rebate of 25% or up to $15,000 per company for YA2020.|
|Slovakia||Automatic deadline extensions for up to three months.|
|Slovenia||Delay in income tax, deferral options.|
|South Korea||Personal tax deduction for personal credit card spending.
VAT cut for small businesses.
Tax preferences for replacing cars.
|Spain||Tax deferrals for six months.|
|Sweden||Ability to reclaim tax payments made from January to March.|
|Switzerland||VAT payment holiday through the end of 2020.|
|Thailand||Personal Income withholding tax cut from 3 percent to 1.5 percent for six months; doubled tax benefit for investing in long-term mutual funds.|
|Turkey||Six-month tax deferral for retail and transportation sectors.
VAT on domestic air travel cut from 18 percent to 1 percent.
Relief for pensioners.
|United Kingdom||Deferral of all VAT payments until 30 June 2020, with nine months to make up payments. Filing of returns still required.
Automatic deferral of Self Assessment payment on account due 31 July 2020 until 31 January 2021.
In addition, Self-employed income support scheme and Job Retention Scheme (furloughed employees) both administered by HMRC.
|Ukraine||VAT exemptions for imports connected to addressing the outbreak.|
|US||Tax payments delayed to 15 July.
Short-term expansion of paid sick leave; total fiscal relief under negotiation could exceed $1,7 trillion.
Unemployment insurance provisions now include an additional $600 per week payment to each recipient for up to four months, and extend UI benefits to self-employed workers, independent contractors, and those with limited work history. The federal government will provide temporary full funding of the first week of regular unemployment for states with no waiting period and extend UI benefits for an additional 13 weeks through 31 Dec 2020 after state UI benefits end.
The proposed recovery rebates will use 2019 tax returns (2018 if the taxpayer has not filed in 2019) to determine the advanced rebate amount and reconcile the rebate based on 2020 income. This means that taxpayers who receive a smaller rebate than they are eligible for based on 2020 income will receive the difference after filing a 2020 tax return, but overpayments of rebates due to a higher income in 2020 will not be clawed back.
Employers are eligible for a 50 percent refundable payroll tax credit on wages paid up to $10,000 during the crisis. The credit would be available to employers whose businesses were disrupted due to virus shutdowns and those that had a decrease in gross receipts of 50 percent or more when compared to the same quarter last year. The credit can be claimed for employees who are retained but not currently working due to the crisis for firms with more than 100 employees, and for all employee wages for firms with 100 or fewer employees.
Certain employer payments of student loans on behalf of employees are excluded from taxable income. Employers may contribute up to $5,250 annually toward student loans, and the payments would be excluded from an employee’s income.
Pay cheque protection plan which is meant to help small businesses (fewer than 500 employees) impacted by the pandemic and economic downturn to make payroll and cover other expenses from 15 February to 30 June. Notably, small businesses may take out loans up to $10 million – limited to a formula tied to payroll costs – and can cover employees making up to $100,000 per year. Loans may be forgiven if a firm uses the loan for payroll, interest payments on mortgages, rent, and utilities and would be reduced proportionally by any reduction in employees retained compared to the prior year and a 25 percent or greater reduction in employee compensation.
Recovery rebate for individuals The bill would provide a $1,200 refundable tax credit for individuals ($2,400 for joint taxpayers). Additionally, taxpayers with children will receive a flat $500 for each child. The rebates would not be counted as taxable income for recipients, as the rebate is a credit against tax liability and is refundable for taxpayers with no tax liability to offset. The rebate phases out at $75,000 for singles, $112,500 for heads of household, and $150,000 for joint taxpayers at 5 percent per dollar of qualified income, or $50 per $1,000 earned. It phases out entirely at $99,000 for single taxpayers with no children and $198,000 for joint taxpayers with no children.