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Individual and employer tax considerations for coronavirus

Across the globe, the spread of the coronavirus is having a significant humanitarian impact and increasingly, an economic impact from stock markets to global supply chains. As governments move rapidly to contain the spread of the virus, global employers are also working to address how to manage employees in affected areas while continuing business operations.

Tax authorities are also reviewing their response and enacting changes to provide relief to affected taxpayers. Below, we have summarised key developments adopted in response to the coronavirus pandemic that impacts globally mobile employees and their employers.

Visit our COVID-19 hub for more support to navigate the impact of the virus 

Summary of tax measures in certain impacted countries

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Country Extended tax filing deadline Extended tax payment deadline Other tax measures and considerations Contacts Last updated
Argentina No No The authorities have announced that Social Security taxes can be reduced in cases where an employee is unable to perform duties at a home office due to the nature of the work they perform. Fernando Fucci - fernando.fucci@ar.gt.com 31/03/2020
Australia No No The widely publicised JobKeeper payment introduced of $1,500 per fortnight for employees of employers whose turnover has declined by 30% or 50% (businesses with a turnover greater than $1billion) will generally not apply to expatriate secondees apart from certain New Zealanders or permanent resident holders. Two Cash flow boosts in the form of a PAYG credit for employers of between $10,000 - $50,000 for businesses with an aggregated turnover of up to $50m. Payroll tax waivers and deferrals available in most states based on specific state criteria of total wages. Queensland: Deferral of state payroll tax return and payment to 3 August 2020. --- New South Wales: Waiver of Payroll tax for remainder of FY20 for businesses with payroll up to $10m. --- Tasmania: Waiver of Payroll tax for remainder of FY20 for certain businesses including hospitality and tourism. --- Western Australia: One off grant of $17,500 for Payroll tax to assist businesses with payroll between $1m and $4m. Thomas Isbell - thomas.isbell@au.gt.com 31/03/2020
Austria Yes, in certain cases three months Yes Short-time working model - reduced working time, between 90% and 10% of net salary is being paid by the company, the remainder will be paid by the Austrian Unemployment Agency. Parents get special child care holiday (three weeks max) if they have no other option for child care due to the closing of care facilities. Implementation of a Hardship Fund for small companies (one person company, companies with less than 10 employees) Phase 1: Individual entrepreneurs, small and micro entreprises get one time aid by EUR 1,000. Phase 2: Altogether, there is a subsidy by 3 times EUR 2,000 for those enterprises possible. Bridge Financing is also available for small and medium sized enterprises (companies with less than 250 employees, max. EUR 50 million turnover or EUR 43 million balance sheet total). Exemption from work (paid leave for a limited period until 31.05.2020, extension possible) or home office for COVID-19 risk groups possible with a COVID-19 risk certificate from the doctor. Christoph Schmidl - christoph.schmidl@at.gt.com and Julia Saric-Bischof - julia.saric-bischof@at.gt.com 12/5/2020
Belgium No Yes, two months For the payment of both personal income tax and non-residents tax, an additional period of two months will automatically be granted on top of the normal payment term, without charging interest for late payment. This measure applies to the tax assessments for the assessment year 2019, established as from 12 March 2020. Employers are automatically granted a two-month delay of payment for professional withholding tax without having to pay any fines or interest. Additionally from 14 March, the time that an employee spends in Belgium as a result of homeworking where they ordinarily work in Luxembourg and France, will not be taken into account to determine where employment should be taxed under the relevant double tax treaties. Samuel Leblanc - samuel.leblanc@be.gt.com and Bart Verstuyft - bart.verstuyft@be.gt.com 24/03/2020
Brazil Yes, two months to 30 June No The government has authorised reductions in working hours (25%, 50% or 70%) for up to 90 days, as well as the ability to suspect an employment contract for up to 60 days. Employees will be entitled to all benefits prior to reduction though will have a proportional reduction in salary. The Brazilian Central Bank report that individuals whose deadline to file was by 5 April 2020 has been postponed to 1 June 2020. Additional measures are being announced by the Brazilian authorities, which to date include financial support for informal workers and relaxation of employment terms. Tamara Gomes Testa -tamara.gomes@br.gt.com 3/4/2020
Bulgaria Yes. The initial deadline for tax return submission was set to 30 April. Currently it is extended until 30 June. Yes. The initial deadline for tax return submission was set to 30 April. Currently it is extended until 30 June. Announcements on employer and employee related tax, social security and payroll developments are related to those companies which will apply for the state aid of so called 60/40 mechanism. Employers may grant up to one-half of the paid annual leave without the consent of their employees or workers. Employers may issue an order to assign work from home or telework to their workers and employees without their consent. The employer may establish in the enterprise or its unit a part-time work for the full-time employees and workers for the whole or part of the state of emergency period. In the event of a state of emergency, the employer may issue an order to suspend the work of the entire or part of the enterprise or of individual employees for the whole or part of the period (until the state of emergency is lifted). When a state of emergency is declared, and all or part of the entity's operations are suspended by order of state authority, the employer is obliged not to admit the employees or workers to their workplaces for the period determined in the order. In such cases, during the period when the work is suspended the employee or worker is entitled to their gross remuneration. State support for employers during a state of emergency should include the full amount of workers compensation benefits under the 60/40 scheme. There are two categories identified of eligible employers. The first is those of the specific sectors of the economy concerned that, have not, at their discretion, terminated the work of the whole enterprise or part of it, or of individual employees. The second category is employers from all sectors of the economy, with some exceptions, which, because of the state of emergency, have stopped the work of all or part of the enterprise or individual workers, or have introduced reduced working hours. The condition for this second category is to certify a 20% decrease in their revenue. An employer who, because of a state of emergency, has issued an order suspending the work of all or part of the enterprise, as well as of individual employees, provided that he meets the other conditions of the decree, may apply for compensation of 60% of the January insurance income of all terminated workers, plus the full amount of the insurance benefits he owes to the gross wages of the workers concerned. His commitment remains at the rate of the remaining 40% of these workers' salaries to the full extent. If he does not, he owes a refund to the funds received. Compensation shall be paid for the period of emergency, but not more than three months. Emilia Marinova - emarinova@bg.gt.com and Victor Bakalov - vbakalov@bg.gt.com 8/4/2020
Cambodia No No Updates will be forthcoming. Ronald C. Almera - ronald.almera@kh.gt.com 1/4/2020
Canada Yes, to 1 June 2020 Yes, from 30 April to 1 September 2020 FEDERAL: Canada Emergency Response Benefit (CERB) The government established the Canada Emergency Response Benefit (CERB) to support workers impacted by the COVID-19 pandemic. This taxable benefit provides $2,000 every four weeks for up to four months to workers who lose their income as a result of the COVID-19 pandemic. The CERB covers Canadians who have lost their job, are sick, quarantined, or taking care of someone who is sick with COVID-19, as well as working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures. The CERB also applies to wage earners, as well as contract workers and self-employed individuals who would not otherwise be eligible for Employment Insurance (EI) and are unable to work due to COVID-19. Additionally, workers who are still employed, but are not receiving income because of disruptions to their work situation due to COVID-19, also qualify for the CERB. This will help businesses keep their employees as they navigate these difficult times, while ensuring they preserve the ability to quickly resume operations as soon as it becomes possible. To help more Canadians benefit from the CERB, the government is announcing changes to the eligibility rules, retroactive to March 15, 2020, to: Allow people to earn up to CAD 1,000 per month while collecting the CERB. Extend the CERB to seasonal workers who have exhausted their EI regular benefits and are unable to undertake their regular seasonal work as a result of the COVID-19 outbreak. Extend the CERB to workers who have recently exhausted their EI regular benefits and are unable to find a job or return to work because of COVID-19. EI Work-Sharing Program - These benefits are for workers who agree to a reduced schedule of work due to new circumstances beyond the control of their employer. The measures extend the maximum duration of Work-Sharing agreements from 38 weeks to 76 weeks and provide for relaxed eligibility conditions and a streamlined application process. PROVINCIAL (Quebec) - Temporary aid for workers program (TAWP COVID-19). To prevent program duplication and given that the Canada Emergency Response Benefit (CERB) is available to the majority of workers eligible for the PATT, the program ended at 4:00 p.m. on April 10, 2020. As of that date, it will no longer be possible to register for the program. Depending on your situation, you can submit an application under one of the other government assistance programs offered here - https://protect-us.mimecast.com/s/TlD0CERx5nuGOrx9IBkmdQ?domain=quebec.ca Quebec: Martin Caron - caron.martin@rcgt.com and Toronto: Christine Herrington - christine.herrington@ca.gt.com 21/04/2020
Czech Republic Yes, three months Yes, three months The filing and payment deadline is extended to 1 July 2020 for personal income tax returns that are not filed by a certified tax advisor. The tax authorities confirmed that taxpayers are entitled to file requests for postponing of certain tax payments; requests for reduction of quarterly or semi-annual income tax advances; waiver requests with respect to late-filing and late-payment penalties. The Government fees related to the submission of the requests are waived automatically. Roman Burnus - roman.burnus@cz.gt.com 16/03/2020
China No No Due to pandemic, the social security authority has provided a payment extension for all companies for the period from February to May 2020. David Dawei-Luo - david.dawei.luo@cn.gt.com and Sherry Chen - sherry.chen@cn.gt.com 4/3/2020
Denmark Yes, postponed to 1 September 2020 (from 1 May or 1 July) Yes and no. Tax due for calendar year 2019 due after 1 July, still a penalty of 4%. If tax due less than 2,900 Euro it will not be included in the preliminary tax for 2021, if pays before 1 September - postponed from 1 July. The 2019 tax filing and payment deadlines of 1 May (employed) and 1 July (employed, includes foreign income) still apply. The employer obligation to filing salary and withholding tax returns is also the same, however the payment of withholding tax on salary for the months of April, May and June has been postpone to 10 September, 12 October and 10 November. Laerke Hesselholt - laerke.hesselholt@dk.gt.com 1/4/2020
Estonia No No Employers are not required to pay a minimum amount of social tax in March, April and May for their employees if the employee is on unpaid leave or working part-time. Tax arrears can be paid in instalments as before, however the interest rate can be reduced up to 100%. Kristjan Jarve - kristjan.jarve@ee.gt.com and Urzula Valb - urzula.valb@ee.gt.com 31/03/2020
France Yes, deadline extended beyond 4 to 11 June (depending on where an individual resides). Extension deadline has yet to be confirmed. No Employers may postpone the payment of social contributions. Anne Frede - AFrede@avocats-gt.com 24/03/2020
Germany Yes, extended to 31 May 2020 for 2018 returns, with conditions Yes, by application The 2018 tax return filing extension applies for employees in specific federal states (eg Hessen, Rhineland-Palatinate, Bavaria) and for taxpayers who are advised by a German Tax Advisor. For the payment extension, the deferment can apply to the payment of income tax prepayments or final income tax payments. Interests should not be due on the deferred payment. Wage tax filings still need to be made and wage tax still need to be withhold and paid by the employer. A deferment of payment for wage tax purposes is principally not possible. However, in some cases an application for deferment of wage tax payments was already successful, although there is no legal basis for this application. Social Security amounts can be deferred upon application, if other supporting measures are exhausted. Additionally, income tax prepayments can be reduced upon application if income tax prepayments were and a refund is likely. Germany introduced short term working rules. However for expatriates a case by case evaluation needs to be made, whether or not they can benefit from the German regulation. More general comments on the short time workings rules can be found under: https://www.wkgt.com/en/insights/corona-short-term-work/?hubId=1773612. Employers can pay their employees bonuses or provide them with a benefit in kind up to an amount of EUR1,500 tax-free. This covers special benefits that employees receive between 1.3.2020 and 31.12.2020. The precondition is that the allowances and benefits are paid in addition to the wages owed in any case. Germany has agreed with Belgium, Luxembourg, Austria and the Netherlands to ease tax treaty restrictions on the number of days cross-border workers are allowed to work from home amid the new coronavirus pandemic. The agreement applies to working days in the period from March 11th, 2020 to May 31st, 2020. After l 30th, 2020, the agreement is automatically extended from the end of one calendar month to the end of the next calendar month or in case of Belgium by agree in writing one week before the beginning of the following month. Therefore, days worked from home since March 11 won't be added to the end-of-year calculations. They count as days worked in the usual country of employment. The Federal Ministry of Finance also plans to agree on general bilateral special regulations with regard to the double taxation agreements with Switzerland in addition to the one for railway staff. The aim is to ensure that the Covid 19-related home office activity does not have any negative tax consequences for the cross-border commuters concerned. As soon as the measures declared due to the Covid-19 pandemic are withdrawn, this special arrangement will be revoked. Marco Schader - marco.schader@wkgt.com 15/5/2020
Hong Kong (China) Yes, tax returns that fall between 23 March and 3 April will be automatically extended to 6 April. Yes, individuals paying Salaries Tax will be allowed to delay payment by three months on payments due between April and June. Under the $80 billion Employment Support Scheme (ESS), the Government will provide wage subsidies to eligible employers to retain their employees in return for employers undertaking not to implement redundancy. The government subsidies are calculated on the basis of 50% of wages, subject to a wage cap of HK$18,000 per month for a period of six months. Payment will be made to employers in two tranches, with the first pay out no later than June. William Chan - william.chan@hk.gt.com and Anthony Chan - anthony.chan@hk.gt.com 14/04/2020
Hungary No No Special tax exemptions are applied to the employers operating in the most impacted industries.Such employers are exempted from the payroll taxes, and only a 4% in-kind health insurance contribution (capped at monthly HUF 7,710) should be deducted from their employees� salaries. Subsidies related to reduced working time are available for a wide range of employers for any part-time work that is at least 25%, but not more than 85% of the original working time. The amount of the subsidy is 70% of the proportionate part of the base wage for the lost working time, capped at the two-fold amount of the minimum wage. A special form of subsidy is available for the employers whose employees are engaged in R&D activities. In case of unpaid leave, from 1 May 2020 the employer should file returns and pay the healthcare service contribution (HUF 7,710 per month) instead of the employee. For in-kind benefits provided via SZ�P Cards in the period between 22 April and 30 June 2020, the tax burden is reduced from 32.5% to 15%. As a general tax-reducing provision, from 1 July 2020, the rate of the social contribution tax is reduced from 17.5% to 15.5%. Timea Zednik - timea.zednik@hu.gt.com 24/04/2020
India Yes Yes The Indian filing deadline for 2018/19 tax returns (revised/unfiled) will be extended from 31 March 2020 to 30 June 2020. All appeals, notices, intimations, orders, etc which were required to be filed/issued/complied with by the taxpayers or revenue authorities where the time limit expires between 20 March 2020 and 29 June 2020 shall be extended to 30 June 2020. For delayed payments of advance tax, self-assessment tax, regular tax, tax deducted at source (TDS), tax collected at source (TCS) made between 20 March and 20 June 2020, interest applies at a reduced rate of 9% per annum (instead of 12%) for this period. The government announced on May 18, 2020 that Provident Fund contribution rates would be reduced for 3 months covering May to July. Employer contributions fall from 3.67% to 1.67%, while employee contributions fall from 12% to 10%. This will provide a welcome easing of liabilities, though does ultimately reduce the accrued saving in an individual�s Provident Fund account. Rajashree Sarna - rajashree.sarna@in.gt.com and Akhil Chandna - akhil.chandna@in.gt.com 20/05/2020
Italy Yes, extended to 30 September Yes, extended to 31 May The social security authorities have confirmed that A1 certificates issued under articles 11 and 12 of the EU Reg. 883/2004 � will be extended automatically to July 31 2020 where the deadlines fall between January 31st and July 31st, 2020 and the employee remains present in Italy during the pandemic. No application needs to be filed to obtain the extension. Additionally article 13 of Reg. 883/2004 provides for the social security of the country where the employee is tax resident to apply, if the employee undertakes 25% or more of their working activity there. Given current travel limitations, employees may be required to work in a country other than the one they are tax resident in. Accordingly they can continue to contribute in Italy if it is their resident country even if working time falls below 25%.Tax withholding and related obligations are suspended throughout Italy for a defined period for employers. Further updates are expected. Tax payments falling between 8 March and 31 May 2020 are suspended, except for the filing of the CU (Certificazione Unica) 2020. Indeed, Deadline and payments will be due by 30 June with no penalties applied. The social security authorities have confirmed that A1 certificates issued under articles 11 and 12 of the EU Reg. 883/2004 - will be extended automatically to July 31 2020 where the deadlines fall between January 31st and July 31st, 2020 and the employee remains present in Italy during the pandemic. No application needs to be filed to obtain the extension. The social security authorities have confirmed that A1 certificates issued under articles 11 and 12 of the EU Reg. 883/2004 - will be extended automatically to July 31 2020 where the deadlines fall between January 31st and July 31st, 2020 and the employee remains present in Italy during the pandemic. No application needs to be filed to obtain the extension. Additionally article 13 of Reg. 883/2004 provides for the social security of the country where the employee is tax resident to apply, if the employee undertakes 25% or more of their working activity there. Given current travel limitations, employees may be required to work in a country other than the one they are tax resident in. Accordingly they can continue to contribute in Italy if it is their resident country even if working time falls below 25%. Lorenzo Carminati - lorenzo.carminati@bgt.it.gt.com and Paola Lova - paola.lova@bgt.it.gt.com 21/04/2020
Ireland No No The tax authorities have arranged a range of measures to ease regulations for internationally mobile employees and their employers. Foreign employments - Operation of Irish PAYE: Irish shadow payroll obligations for foreign employers where an employee was working abroad for a foreign entity prior to COVID-19 but relocates temporarily to the State during the COVID-19 period and performs duties for his or her foreign employer while in the State. This relief applies only to genuine cases. The standard period for relief from Irish payroll taxes for short term business travellers to Ireland was 60 days in a calendar tax year for residents from countries with which Ireland has a double tax agreement and 30 days for non-tax treaty residents. Irish Employments - PAYE Exclusion Order: For non-resident employees who are working abroad for an Irish employer for whom a PAYE exclusion order is in place, the position will not be adversely impacted where the employee works more than 30 days in the State due to COVID-19. Trans-Border Workers Relief: This relief can provide relief from Irish tax on a foreign employment exercised wholly outside Ireland in a tax treaty location, (eg the UK) once certain conditions are met. These conditions include that the employee returns home at least one day per week and does not perform more than incidental duties of the foreign employment in Ireland. Revenue guidance confirms that days spent working at home in Ireland due to COVID-19 will not preclude the individual from being entitled to claim this relief provided all other conditions of the relief are met. Costs of assisting employees returning to the State including payment of holiday/flight cancellations: Provided the employee is integral to the business and was required to return to deal with issues related to the COVID-19 crisis by his or her employer, the costs incurred are reasonable and the employee is not otherwise compensated (ie via an insurance policy or direct claim to the service provider), a benefit in kind will not arise. This may include costs related to family members who were on holiday or due to go on holidays with the employee. Residence rules - Force Majeure circumstances: the individual will not be regarded as being present in Ireland for tax residence purposes for the day after their intended day of departure provided the individual is unavoidably present in the country on that day due only to force majeure circumstances, including COVID-19. Special Assignee Relief Programme (SARP): The 90 day employer filing obligation, is extended for a further 60 days. It is anticipated that such an extension should provide sufficient time for employers to file the required return, but exceptional cases may be submitted to Revenue for consideration on a case by case basis. PAYE Dispensation Applications: Given the unprecedented circumstances and the restrictions on travel as a consequence of COVID-19, Revenue will not strictly enforce the 30 day notification requirement for PAYE dispensations which is applicable to short term business travellers from countries with which Ireland has a double taxation treaty who are going to spend in excess of 60 workdays in the State in a tax year. Share schemes filing obligations: The filing deadline for all 2019 share scheme returns is being extended from 31 March 2020 to 30 June 2020. Jillian O'Sullivan - jillian.osullivan@ie.gt.com and Jane Quirke - jane.quirke@ie.gt.com 24/03/2020
Isreal Yes, 2 months Yes, 2 months Unpaid Vacation: In accordance with Social Security guidelines, an employee may be entitled to unemployment benefit if the employer has placed them vacation (unpaid) for a period of 30 days or more, or if they are fired following the impact of the pandemic. An employee whose job has been reduced or has been in isolation for two weeks is not entitled to unemployment benefit. The unpaid vacation conditions are in accordance with the normal unemployment conditions set in Israel. Igal Manasherov - Igal.Manasherov@il.gt.com 14/05/2020
Japan The tax authorities have confirmed they will accept returns filed after 17 April as being timely submitted if the taxpayer can demonstrate the delay is due to the COVID-10 pandemic. The tax authorities have not confirmed whether payments made after the extended deadline will accrue interest. It would be advisable for taxpayers to pay by the extended deadline. The government announced that all individual with their address registered on the Resident Register will be eligible to receive the JPY 100,000 grant. It has not yet been confirmed that this is tax exempt. There will be no income limitation on the grant and so is available to all residents, however the government may allow people to voluntarily opt-out. Application will likely be available online instead of requiring physical attendance. Foreign nationals with visa a duration of more than 3 months are legally required to register themselves with the Resident Register, therefore, many expats working in Japan will be eligible for the grant. It is intended that the grant will be paid around mid-May 2020. Tosh Kamii - tosh.kamii@jp.gt.com and Nicole Baxter - nicole.baxster@jp.gt.com 21/04/2020
Korea No No There are no specific announcements at the moment. Kwangil Ahn - kwangill.ahn@kr.gt.com 31/03/2020
Malaysia Yes, two months Yes, two months The Government has extended the Movement Control Order (MCO) on until 14 April. The deadline to file a tax return for individual taxpayers (who are not self-employed) is extended from 30 April to 30 June. The Central Bank has also issued a moratorium for affected individuals to delay the repayment of existing loans, including mortgages, for a period of six months. This deferment, however, only applies to individuals whose loans/financing are not in arrears exceeding 90 days as at 1 April 2020. Employees contribution to statutory social security has been reduced from 11% to 7% for the period from April to December 2020. Daniel Woo - daniel.woo@my.gt.com 31/03/2020
Mexico Yes, to June 30, 2020 (from April 30, 2020) Yes, to June 30, 2020 or pay over 6 instalments if the 2019 tax return is filed by April 30, 2020 and first instalment paid by then A range of payroll tax deferrals, subsidies and forgiveness have been granted locally by different States. These vary from state to state and employers should review those applicable to ensure appropriate compliance. Carlos Alfonso Hernandez Perez - carlos.a.hernandez@mx.gt.com 29/04/2020
Netherlands No Yes, with approval There are reduced provisional assessments of income tax. Niels Dekker - niels.dekker@nl.gt.com and Maria Mulder - maria.mulder@nl.gt.com 16/03/2020
New Zealand Discretionary (no statutory extension) Discretionary to cancel interest and penalties for late payments if CONVID-19 related Wage subsidies for affected businesses and isolated employees for 12 weeks; the threshold for provisional tax increased to $5,000 (this is the interim tax to be paid towards the end of year bill from non-withholding tax sources). Greg Thompson - greg.thompson@nz.gt.com 16/03/2020
Nigeria Yes, state only Yes, state only State Internal Revenue Service (SIRS): Out of the thirty six SIRSs in Nigeria only the Lagos State Internal Revenue Service (LIRS) and the Federal Capital Territory Internal Revenue Service (FCT IRS) have extended the deadline for filing of annual returns for individual taxpayers for two and three months respectively, ie 31 May 2020 and 30 June 2020. This extension is due to the Coronavirus (CONVID-19) pandemic, which has affected individuals and organisations. The Federal Inland Revenue Service (FIRS) has extended the deadline for filing of company income tax returns by one month, ie 31 July 2020. Nkwachi Abuka - nkwachi.abuka@ng.gt.com and Ajayi Irivboje - ajayi.irivboje@ng.gt.com 31/03/2020
Norway No No A number of measures have been announced by the Norwegian authorities to support cash management and liquidity including: Reduced the mandatory employer payment period from 15 to 2 days on termination, as well as removal of waiting days. The mandatory employer period for payment of sick-pay related to the corona pandemic is reduced from 16 days to 3 days. It has been proposed that employer's national insurance contribution rate will be reduced by 4 % for two months from 14.1% to 10.1%. The deadline for payment of the employer's national insurance contribution is postponed from 15 May to 15 August 2020. Tax exemption for some benefits in kind provided as a result of the COVD-19 pandemic, such as internet access, mobile phone. Lars Ploen - lars.ploen@no.gt.com 13/04/2020
Philippines Yes, 1 month to 15 May Yes, 1 month to 15 May If the rules requiring community quarantine extend beyond 15 May, the authorities have indicated that a further extension of 30 days will be granted, reviewed monthly. Lina Figueroa - lina.figueroa@ph.gt.com 16/03/2020
Portugal No Yes The government has introduced a number of measures to support employers and employees including financial support for employees who must stay at home to accompany their children up to 12 years old, totaling 66% of basic remuneration (33% paid by the employer, 33% paid by Social Security). Pedro Ferreira Santos - pedro.santos@pt.gt.com 24/03/2020
Puerto Rico Yes, to July 15 Yes, to July 15 Industries that can operate: security, health, food, utilities, ports, airports, press, first responders, hardware stores, auto repair shops, gas stations, banks and financial services, laundries, laundromats, repairs and maintenance services, funeral homes for limited services, utilities and infrastructure services, export of merchandise, carriers, data centers, call centers, legal, accounting and other professional services, construction and manufacturing. Under US relief provisions, employers will pay up to two weeks sick leave and up to 12 weeks of Family Leave, employers will take credit for amounts paid. Small Business Administration loans under Payroll Protection Program based on payroll with possibility of forgiveness. Loan payment extensions provided by some financial institutions, vary by institution, must contact bank directly. Lina Morales - lina.morales@pr.gt.com 8/5/2020
Russia Yes, by 3 months but pending final enactment of the Government decree to 30 July No, payment deadline remains 15 July As of 1 April 2020, small and medium enterprises (in accordance with registry) are allowed to apply decreased rates of social insurance contributions to the part of an employees remuneration that exceeds the minimum wage. The decreased rates are as follows: obligatory pension insurance contributions - 10%; obligatory social insurance contributions - 0%; obligatory medical insurance contributions - 5%. Also, an extension has been announced for the payment of social insurance contributions. It is planned that payment of social insurance contributions for remuneration for the period March to May 2020 will be extended by six months and for remuneration for the period June to July 2020, the social insurance contributions payment deadline will be extended by four months. Liliya Yulgusheva - liliya.yulgusheva@fbk.ru 21/04/2020
South Africa No No Treasury made provision for the expansion of the Employment Tax Initiative (ETI) programme for a limited period of four months, beginning 1 April 2020 and ending on 31 July 2020 as follows. Increasing the maximum amount of ETI allowable during this four month period for employees eligible from R1000 to R1500 in the first 12 qualifying twelve months and from R500 to R1 000 in the second twelve qualifying months. Allowing a monthly ETI claim in the amount of R500 during this four month period for employees from the ages of 18 to 29 who are no longer eligible for the ETI as the employer has claimed ETI in respect of those employees for 24 months; and 30 to 65 who are not eligible for the ETI due to their age. Accelerating the payment of employment tax incentive reimbursements from twice a year to monthly as a means of getting cash into the hands of tax compliant employers as soon as possible. The proportion of PAYE that can be deferred by employers, without SARS imposing administrative penalties and interest for the late payment thereof, is increased from 20% to 35% for businesses with an annual turnover of less than R100 million. Businesses with a turnover of more than R100 million can still apply for deferment of payment, however the application will be considered on a case by case basis. Azwinndini Magadani - Azwinndini.Magadani@sng.gt.com 12/5/2020
South Korea No Yes, to 31 August, 2020 from 1 June None for Individual. Corporations with locations in special disaster zones extend the filing and payment deadline for corporate tax (March Reporting Corporation) and VAT reporting for one month. Kwangil Ahn - kwangill.ahn@kr.gt.com 24/03/2020
Singapore Yes. Extended to 31 May 2020. However Grant Thornton Singapore can extend its client�s tax returns to 15 August if a submission is made by 30 April 2020. Yes. Tax is only due once a notice of assessment (tax bill has been raised). Employees can request a deferment of any tax payments due in April/May and June. IRAS have announced the relaxation of a number of rules related to individuals who are unable to travel as a result of travel restrictions. These include rules on the tax residence of companies, Singapore permanent establishment risks and taxability of employees stuck in Singapore arising from travel restrictions. There are different rules for different groups of people and so we would recommend advise is sought to ensure that your employees meet the various conditions or whether you have to continue considering the normal domestic tax rules and relevant double taxation agreements. Employers are responsible for all new and existing foreign employees. More information can be found at www.mom.gov.sg/covid-19. These include ensuring suitable residences are found for Stay-Home Notice (SHN), ensuring they have a Singapore sim card for Ministry of Manpower to contact them and arranging for food etc so they do not need to leave their residence during the SHN. --- From 20 March 2359 hours, all work pass holders (eg Employment Pass holders, and including dependants) planning to enter Singapore from any country will need MOM's approval before they commence their journey. --- From 23 March 2359 hours: Short-term visitors: No entry or transit through Singapore --- Work pass holders: Entry/return for those providing essential services (and their dependents) --- All Singapore Citizens, Permanent Residents and Long Term Pass Holders returning to Singapore: - From Hubei: 14 day quarantine. - From all other countries: 14 day Stay-Home Notice. Adrian Sham - adrian.sham@sg.gt.com 21/04/2020
Spain No No Employers in urgent need to adjust their workforce, have a tool provided by existing Spanish labour regulations, which are the Temporary Employment Regulation Proceedings also known as �ERTE�. A tool that already existed but now has been simplified. An ERTE is an administrative procedure allowing employers to suspend employment contracts or reduce working hours temporarily, in response to temporary economic, organizational, technical or productive adverse circumstances affecting their activity. The ERTE can be justified for economic, technical, organizational and production reasons which under certain circumstance may be invoked in the current situation of COVID 19. While the ERTE due to COVID 19 is in force, employees will remain registered for Social Security purposes and a subsidy is paid by Spanish authorities, so the Company does not pay their salary during the period of suspension of the employment contracts or reduction of the working hours. The authorities announced on 31 March that small businesses may postpone payment of Social Security contributions relating to the period April to July until a later date. The Spanish tax authorities announced on 14 April that filing of withholding tax (WHT) returns and payment of tax normally due between 15 and 20 April has been extended to 20 May. This applies only to businesses with an annual turnover of EUR600,000 or less. Pablo Azcona - pablo.azcona@es.gt.com and Manuel Alvarez Ferrer - manuel.alvarez@es.gt.com 12/5/2020
Sweden No (Respite to file individual tax returns are granted for individuals with bureau assistance until 15 June, regardless of the method for filing). No Preliminary tax on salary from 1 January 2020 to March 2020 could be refunded. The taxes should be repaid, including interest, by the taxpayer within 12 months. Companies with larger tax debts and historic financial issues are excluded. These measures are proposed to be applied retrospectively from 1 January 2020. Employers social security contributions for businesses with up to 30 employees are to be lowered between 1 March and 30 June 2020. Further, the government is proposing to support an amount of an employer's salary costs if an agreement of reduced working hours is made between the employer and the employee. The government is further proposing to temporarily take over the responsibility for all sick pay costs during April and May 2020. Helena Lindahl - helena.lindahl@se.gt.com 2/4/2020
Switzerland Yes, the extension differs by Canton and ranges from 31 May to 31 July. Taxpayers should review the applicable extension for their tax filing. No (However, this can most likely be discussed on an individual basis with the competent tax authority (extension of deadline/agreement of payment in installments) The waiting period for the payment of short-time working compensation is reduced to one day until 30 September 2020. Closure of companies by the authorities or loss of work or earnings due to the coronavirus are generally covered by short-time work compensation. Employers must provide a plausible explanation why the loss of work or revenue to be expected in their company is caused by the occurrence of coronavirus. An emergency ordinance passed by the Federal Council on the granting of loans with joint and several guarantees provides companies affected by the consequences of the coronavirus with guaranteed bridging loans of up to 10 percent of their turnover, or a maximum of CHF 20,000,000. Bernhard Lauri - Bernhard.lauri@ch.gt.com and Anthony Haug and anthony.haug@ch.gt.com 31/03/2020
Taiwan Yes, to 30 June Yes, to 30 June If based on mutual agreement, working hours for an employee are reduced by more than 16 hours for every two weeks, the employee can join the Government sponsored training program. If the employee participates in this program, the employee can receive a government subsidy of up to TWD18,960 per month. Alternatively, the employee can choose not to attend the training program but apply for 'cut-back on working hours subsidy' for up to TWD 11,000 per month. If an employee is under quarantine and the employer continues to pay the employee salary in full, the employer can claim double the salary expense amount for the employee as tax deductible item for tax purpose. Jay Lo - jay.lo@tw.gt.com 8/5/2020
Thaliand Yes, extended from 31 March to 30 June Yes, extended from 31 March to 30 June No employer indicatives have yet been announced but the government is discussing possible measures. Melea Cruz - melea.cruz@th.gt.com 14/04/2020
United Kingdom No Yes, only applies to 2nd 2019/20 Payment on Account due 31 July 2020 which has been extended 6 months to 31 January 2021. Individuals prevented from leaving the UK may be able to not count days of presence for determining tax residency if they qualify as 'exceptional circumstances'. Additionally, the Government have introduced the Coronavirus Job Retention Scheme where employers can apply for a grant to claim 80% of furloughed employees usual wage costs up to GBP 2,500 per month. HMRC have advised that the deadline for Short term Business Visitor (Appendix 4) reports has been extended from 31 May 2020 to 31 July 2020. Katy Bond - katy.bond@uk.gt.com and Heather Smallwood - heather.smallwood@uk.gt.com 17/04/2020
United States Yes, 90 days Yes, 90 days In addition to extensive legislation for employers, the tax filing and payment deadline for April 15 has been pushed back by 90 days to 15 July. Richard Tonge - richard.tonge@us.gt.com 16/03/2020
Vietnam No No The government has announced economic support measures for employers in certain industries including the deferral of certain taxes, which requires application to the authorities. Tax returns remain due by the end of March. Hung Du Nguyen - hungdu.nguyen@vn.gt.com 16/03/2020