At the beginning of March, G-7 leaders said they were monitoring the rapidly unfolding coronavirus situation, ready to act and cooperate as necessary to handle the pandemic that is halting the world. Two weeks later, the G-7’s tone became urgent. Instead of standing by and monitoring, G-7 members said they would do “whatever is necessary” to address the crisis.
Doing “whatever is necessary” is a discussion that is constantly shifting. In the tax realm, it appears the name of the game is liquidity. Helping taxpayers hold onto some amount of cash during this time of economic volatility is imperative and several coronavirus-related measures are geared toward that goal.
Tax Deadlines Deferred or Eliminated
Several governments are allowing individual and corporate taxpayers to defer various kinds of tax payments, but the deferrals vary significantly. Some are lasting one month while others extend up to a year. Some countries are sweetening the pot with interest-free deferrals.
Large businesses in Denmark just received a series of VAT extensions over the next few months. Monthly VAT payments normally due in March, April, and May will automatically receive a 30-day extension. Small and medium-size enterprises are getting an even larger break for their 2020 VAT payments…Read more>>