India has announced relief measures that will extend the filing deadline for income tax and goods and services tax returns, provide relief under the tax dispute scheme, and lower interest rates for delayed tax payments.
Finance Minister Nirmala Sitharaman announced March 24 that taxpayers now have until June 30 to file their annual income tax and GST returns, extending the deadline from March 31. Taxpayers with turnover of less than INR 50 million (approximately $658,000) that have monthly GSTR-3B returns due in March, April, or May may file them by June 30 with no interest, late fees, or penalties. Taxpayers above that threshold who file by that date will benefit from a reduced interest rate of 9 percent (from 18 percent) with no late or penalty fees.
The government has also proposed relief under the "Vivad se Vishwas" scheme, a scheme that was introduced in the 2020-2021 budget for taxpayers to settle income tax disputes with India’s tax authorities. Sitharaman said the government will be waiving the additional 10 percent levied on dispute payments if they are made by June 30. Under the original proposal, taxpayers who chose to settle their disputes after the March 31 deadline would have had to pay the additional levy on the disputed amount.
For delayed tax payments made between March 20 and June 30, Sitharaman said that taxpayers will benefit from a reduced interest rate of 9 percent (rather than 12 to 18 percent).
Sitharaman also announced relaxed rules for businesses, including the easing of requirements to hold board meetings and other filing fees and requirements.
G-7 nations have enacted a wide-range of financial relief packages to mitigate the economic effects of the COVID-19 pandemic. In addition to already enacted measures, G-7 finance ministers and central bank governors said that they are providing tax deferrals and grants for affected companies, particularly small and medium-size businesses. “We will do whatever is necessary to restore confidence and economic growth and to protect jobs, businesses, and the resilience of the finance system,” they said in a March 24 statement.
Many jurisdictions have raced to roll out tax relief measures to mitigate the economic impact of the pandemic. Queensland, Australia announced March 24 that the state government will invest $4 billion to support its economy. For small and medium-size enterprises affected by COVID-19, the government is refunding two months of payroll taxes and giving them a three-month payroll tax holiday, with the possibility of a six-month payroll tax deferral. The government also launched an online portal for businesses to apply for payroll tax relief.
Australia’s government also announced March 24 that the Australian Taxation Office has updated its website on COVID-19 tax information to make it easier on taxpayers to stay informed of compliance requirements and tax relief measures.
Poland’s government announced March 23 that it will delay its new VAT regime until June 30 in the hopes of alleviating the compliance burden on businesses. The new VAT rate matrix will be effective from July 1. "Updating accounting and warehouse data related to the verification of new classification symbols and new VAT rates, or introducing appropriate changes in the field of recording sales using cash registers, may cause additional difficulties for a large number of taxpayers," explained Deputy Minister of Finance Jan Sarnowski.
Hungarian Prime Minister Viktor Orbán announced March 23 that his country will be expanding its announced relief measures. Small businesses and self-employed individuals will now be granted a tax exemption under the regime for small businesses until June 30. Previously, the exemption only applied to taxi drivers paying taxes under the regime for small businesses. Also, taxpayers who have tax debt payment requirements, generally or under the regime for small businesses, will not be required to make payments until the end of the coronavirus pandemic, following instruction from the Hungarian government.
South African President Cyril Ramaphosa said in a March 23 statement that his government will provide private sector employees who make less than ZAR 6,500 (approximately $369) monthly with a tax subsidy of up to ZAR 500 a month, aiding over 4 million workers. Further, the South African Revenue Service will provide employment tax incentive reimbursements monthly, instead of twice a year, for employers. Ramaphosa also said that businesses making less than ZAR 50 million can defer 20 percent of their "pay-as-you-earn" liabilities without interest or penalties for six months, aiding over 75,000 small and medium-size businesses.
Norway announced March 20 a proposal to reduced the VAT rate from 12 percent to 8 percent from March 20 to October 31 to alleviate negative effects on businesses. It also plans to extend the VAT payment deadline from April 14 to June 10. The deadline for payment of second-term withholding tax would be extended from April 15 to September 1. The Ministry of Finance said it estimates tax deferrals will amount to NOK 117 billion (approximately $10 billion).