COVID-19: Deferral of VAT payments, retro-active applicable as of Jan 1, 2020

Deferral of taxes

Employers’ social security contributions, preliminary payments of corporate income tax, and the payment of VAT will be deferred. The deferral includes up to three months’ of tax payments and will enter into force by 7 April 2020. The deferral would apply retroactively, enabling taxes paid from January to March 2020 to be refunded. This should be an important measure in helping companies to retain their liquidity, and preserve their ability to cover ongoing costs. It is proposed that an interest charge would apply, and an extension fee also would be imposed. For a tax deferral to be granted, the company must be sufficiently financially stable, and may not have any “large” tax debts (the amount is yet to be confirmed).

Under existing legislation, companies may file a revised preliminary income tax return where income is reduced. Doing so would enable the remaining preliminary tax payments to be adjusted, while the deferral could be used to obtain a tax repayment. The tax authorities do not impose interest or fees on the submission of a revised tax return resulting in reduced future tax payments

Source Deloitte