Tax 

Extension of the Remission Guidance for Retailers and Service Providers

On Monday, October 26, the Ministry of Finance introduced further tax reliefs through the “Decision on remission of the accrued interest and associated fees and tax advance due to an extraordinary event” published in Financial Newsletter No. 25/2020. What measures does it bring?

The measures brought by the new Decision are as follows:

  • remission of default interest relating to a late VAT payment for September, October and November 2020 (or for the 3rd quarter);
  • remission of the road tax advance;
  • remission of the income tax advance (for both individuals and corporate entities) payable between 15 October 2020 and 15 December 2020.

Financial newsletter No. 25/2020 is available on the website of the Ministry of Finance.

In principle, these are identical tax reliefs that previously applied to a rather limited group of selected entities; however, they newly apply to any entities that generated more than half of their income from the “retail sale and sale and provision of services in their establishments” between 1 June 2020 and 30 September 2020.

The taxpayer must announce the use of the tax relief, if any, to the tax administrator (the Ministry of Finance specifies the form of the announcement). We would like to note that the remission of advance payments does not constitute the remission of the tax itself or postponement of deadlines for the filing of tax statements (including any potential relating sanctions).

Given the limited number of entities that may use the above tax reliefs, please note other possibilities that may contribute to the effective addressing of current problems:
Use of a newly introduced possibility of retroactive utilisation of the tax loss

  • Decreasing of the paid advances for tax liabilities, including complete cancellation, even retrospectively
  • Extension of the deadline for filing the income tax return under certain conditions
  • Deferral of due dates for taxes or setting of a repayment schedule – so-called tax payment deferral (with a positive impact on the reduction of interest from 14% plus repo to 7% plus repo, which can moreover be remitted)
  • Certain possibilities are also offered by the current regulation of social security and health insurance
  • The possibilities of remission under the current guidance when extraordinary reasons may usually result in the reduction of potential sanctions (including remissions beyond the scope of the guidance)

For this reason, we recommend looking for the most appropriate solution specific to every situation (including potential subsidies or salary compensation, for example in the Antivirus programme).

Ministry of Finance COVID-19 Coronavirus Income Tax VAT dReport newsletter

Upcoming events

Seminars, webcasts, business breakfasts and other events organized by Deloitte.

    Show morearrow-right