On 1 April 2020 the OECD published on its website detailed information on measures taken by countries to help businesses and individuals during the coronavirus crisis.
Measures to help business case flow
These include tax administration measures such as extensions to tax filing dates, deferral of tax payment deadlines and flexibility on repayments of tax debt. Taxpayers are also being helped by stepping up the payment of direct tax and VAT refunds, and changing policies in relation to tax audits. Tax policy measures in relation to business cash flow include reduced social security contributions, waivers of other tax payments, enhancements to tax loss provisions and refunds of tax credits.
Non-tax measures in relation to business cash flow include loans and guarantee schemes, wage subsidies made to the employer or directly to employees, the deferral of business costs such as payments of rent or interest, subsidies to business costs, subsidies for self-employed people or deferral of dividend distributions, for example for state-owned enterprises.
There have also been various similar support measures that are targeted at particular sectors including tourism, transport and airlines.
Measures to help household cash flow
The cash flow of households is also being enhanced by measures such as the deferral or waiver of tax or social security payments. Governments are also providing wage subsidies for individuals remaining at home for childcare purposes; workers who have partly or fully lost their employment; or other groups of individuals.
Individuals are also being helped by enhanced or extended eligibility for unemployment benefits or sick pay, or by other cash transfers including temporary new types of cash transfer. Cash flow is also being helped by the payment of social benefits in advance. The deferral of household fixed costs is another method being used by governments to ease the cash flow problems of individuals.
Measures to support consumption
Consumption is being supported by measures such as changes in value added tax (VAT) rates, regulations to combat unjustified price rises and other measures.
Measures to support investment
Investment is being supported by the introduction of accelerated depreciation provisions; enhancement of tax depreciation allowances; and tax rate reductions.
Measures to stimulate employment
To stimulate employment governments are reducing tax rates for bonuses or overtime; and introducing tax provisions to encourage companies to train unemployed workers during the crisis.
Measures to support the health sector
To support health workers governments are introducing personal income tax and social security contribution reductions for those workers; and measures to increase the numbers of health sector workers.
Business tax rate provisions are targeted at businesses producing health equipment, goods and services. VAT exemptions or reductions are being introduced for medicines, equipment and services. Measures have also been taken to facilitate customs clearance for goods that help in the fight against the pandemic. Measures are being taken to provide tax and other relief for donations of money or medical equipment to help in the health crisis.
Governments are also taking measures to ensure that local or regional governments are equipped to take measures to support businesses and individuals during the crisis.
