Tax relief will be extended. Ministry of Finance has prepared a second liberalization package

In addition to the already approved liberalization package, which we have already reported in detail in recent days, the Ministry of Finance has prepared further measures to help taxpayers bridge the emergency caused by the current situation caused by the spread of coronavirus. What is the content of the second liberalization package?

The Ministry of Finance has prepared and approved another series of measures to extend the already approved liberalization package. More information about the first liberalization package can be found here. On 24 March 2020, the Ministry of Finance published Financial Bulletin 5/2020, specifying the second tax liberation package.

Income tax waiver in June

First of all, the ministry decided on a general waiver of the June income tax advance payment for both individuals and legal persons. Therefore, the June advance due on 15 June 2020 will not be paid at all. You can learn more about current backups here.

Waivers relating to real estate acquisition tax

In addition, the Ministry decided on a general waiver of penalties for late filing of the real estate acquisition tax return and for late payment of the real estate acquisition tax or advance payment for this tax. The waiver of penalties shall apply to all tax returns with a filing deadline from 31 March to 31 July 2020, if filed no later than 31 August 2020. At the same time, interest in arrears or interest shall be waived. withholding the relevant tax.

Introduction of loss carryback mechanism

The Ministry also intends to introduce a loss carryback mechanism for personal and corporate income tax for the year 2020. In general, tax loss can be applied as a deductible item from the tax base in the following five taxation periods, loss reported. Thanks to the introduction of the loss carryback, the loss incurred for the taxable period of 2020 could also be applied retroactively to both 2018 and 2019 if, in those years, the taxpayer reported a positive tax base and paid income tax. This would entitle the taxpayer to a refund of the overpaid tax paid for 2018 and 2019.

Suspended obligation to electronic sales record

Regarding the launch of the third and fourth wave of electronic sales records from May 1, 2020, the Ministry of Finance originally announced a three-month pardon, during which time entrepreneurs newly registering sales will not be fined. Subsequently, however, the Ministry came to the conclusion that a number of tax subjects currently have different priorities and thus decided to totally interrupt the obligation to record sales, during the state of emergency and the following three months after the state of emergency. This measure applies to entities belonging to all stages of the EET, i.e. not only to entrepreneurs for whom the obligation to register sales should apply from 1 May 2020.