Are there any transitional tax measures to mitigate the impact of COVID-19?

Concerning taxes levied on citizens and companies, and within the scope of Resolution nr. 12/2020, of 31 March which determines the need to adopt measures, namely, of deferral of tax obligations, the Tax Authority has published a notice informing domestic and oil taxpayers that the deadline for filing tax returns and paying taxes has been extended until May 31, 2020, under the following terms:

a)    For domestic taxpayers, this extension applies to:

  • income tax and the respective annual declaration for the 2019 tax year;
  • the Services Tax referring to the months of March and April and the respective monthly declaration; and
  • income tax instalment payments and withholding tax (including withholding tax on wages for March and April) and the respective monthly forms.

b)    For oil taxpayers, this extension applies to the payment and submission of the tax returns concerning income tax, additional income tax and supplementary oil tax for the 2019 fiscal year.

In this same notice, the Tax Authority also:

a)    Announced that the penalties related to failures in the submission of tax returns and in the payment of taxes by the due date will not be applied to taxpayers during this extension period;

b)    Recommended the taxpayers to use the E-Services platform (available through the Tax Authority’s website) to facilitate the submission of theirs tax returns.

 

Are there any incentives to mitigate the impact of the COVID-19?

Regarding incentives, the Government has adopted Resolution nr. 12/2020, of 31 March, by which the Government has undertaken to adopt the necessary measures to timely implement measures such as the creation of credit lines at low interest rates and the grant of direct financial support to citizens and companies.

Additional legislation is expected to be approved to regulate how these incentives will be implemented.

 

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This information is being updated on a regular basis.

All information contained herein  and all opinions expressed are of a general nature and are not intended to substitute recourse to expert legal advice for the resolution of real cases.