On 14 October 2020, the Finance Ministry announced that a large liberation packages are extended in response to coronavirus pandemic. The package includes delay of tax payments by companies whose primary activity falls into an area targeted by the Government restrictions, including:
- operation of restaurants and bars,
- operation of music, dance, game and similar social clubs and discos
- organizing concerts and other musical, theatrical, film performances,
- organizing wedding celebrations, celebrations of joining a registered partnership and funerals,
- operation of circuses and variety shows,
- organizing pilgrimages and similar traditional events,
- organization of congresses and other educational events,
- organization of trade fairs,
- operation of indoor sports grounds, gyms and fitness centers, artificial swimming pools, wellness facilities,
- operation of zoos,
- operation of museums, galleries, exhibition spaces, castles, chateaux and similar historical or cultural objects, observatories and planetariums.
In addition to these measures, entrepreneurs adversely affected by coronavirus may continue to benefit from the following liberalization package measures. Any person who can demonstrate coronavirus related reasons can request it. Typically, it may be a disease or quarantine of an accountant or other key employees whose absence made it impossible to meet the tax liability. This measure will affect all taxes administered by bodies subordinate to the Ministry of Finance and all tax entities (natural and legal persons, entrepreneurs and non-entrepreneurs). The Financial Administration will be as accommodating as possible in assessing applications, especially for entities from the most affected areas.
Again, the automatic deferral applies for all payments of VAT, income tax, and road tax due during the emergency period and only requires sending a notification that the taxpayer meets the conditions. The deferral applies until December 2020.
The packages also include the loss relief previously approved that allows companies and individual entrepreneurs to carry back losses incurred in 2020 for offset against taxable profit in 2018 and 2019. With respect to the loss relief, it is provided that taxpayers expecting a loss for 2020 may request a refund (if available after offset) and the refund will be paid as a matter of priority.
