Due to COVID-19, government authorities across the globe are introducing new measures relevant to employers and employees. It’s vital to stay informed of changes during these times.
We at Immedis are here to support in sharing relevant information as we all navigate this ever changing situation.
Country specific information has been arranged alphabetically by country name below so you can easily find the information that is relevant to you. The following updates relate to Belgium, Bulgaria, Canada, Denmark, Germany, Ireland, Netherlands, Norway, Sweden, UK and USA.
Belgium
Two meetings of the Council of Ministers in Belgium took place on 06 and 20 March 2020 to agree and finalize a number of measures to support businesses and self-employed individuals during the COVID-19 crisis.
We have summarized below the main topics which we believe are most relevant to our customers and their employees:
- Employer liabilities in relation to social security contributions and withholding tax liabilities may be deferred or exempt for quarter 1 and 2 of 2020 upon request. No late payment penalties will be charged as a result.
- Corporation and personal tax may also be deferred upon request by the individual or the company if effected by COVID-19.
- In relation to staff retention, companies affected by the COVID-19 crisis should register as being in such difficulties. Temporary unemployment due to force majeure will be extended by three months until 30 June 2020.
- Temporary increase in the unemployment benefits for both economic and force majeure reasons have been put in place. The unemployment benefits will be temporarily increased from 65 to 70% for a period of three months. People using the benefits system for the first time will be granted a fixed amount of EUR1,450 per month once registered.
- Self-employed individuals affected by the current crisis are eligible for the bridging right on the grounds that they are unable to provide their services for more than a week. The amount available will vary between EUR1,291.69 and EUR1,614.10
- Financial aid is available for businesses from the regional authorities. Full details can be obtained from their respective websites:
The full documents can be found HERE and HERE.
Bulgaria
As detailed by the Bulgarian State Gazette, the following information should be noted:
Measures and actions during the State of Emergency Act
This is an Act applicable for the period of the State of Emergency only.
CLICK HERE to read more about the Act.
Payroll changes: No changes were introduced. Same deadlines and submissions apply as before.
State provided financial assistance: 60/40 salary payments
The Bulgarian Government introduced a financial compensation of Bulgarian employers during the State of Emergency. Broadly speaking, as part of the measures the Government will compensate employers for 60% of employment compensation paid. The salary base to be used in relation to the 60% compensations will be the employment income which was subject to Bulgarian social security in January 2020. The State will also cover the employer’s social security contributions. (This measure is envisaged to last for a maximum period of three months.)
The following employers with economic activity in sectors A, K, O, P, Q, T and U under the Classification of Economic Activities are excluded from the category of employers who can benefit from this relief. The other qualifying conditions are as follows:
- 20% decrease of income sales for the month preceding the application in comparison to the same month in 2019 (for companies established prior to 01 March 2019) and the average income for January and February 2020 (for companies established post 01 March 2019);
- Employers stopped the operation of their enterprise as a direct result of the measures imposed by the State during the State of Emergency.
As part of this measure, employers should continue remunerating their employees as normal and should make an application to the Labour Office to receive the 60% financial reimbursement.
You can find more information on the Decree of the Council of Ministers HERE and full information on amendments made to the original act HERE.
Canada
Canada Emergency Response Benefit (CERB)
- CERB was introduced to provide financial support to employed and self-employed Canadians who are directly affected by COVID-19.
- CERB can be applied for directly via your Canada Revenue Agency (CRA) My Account or over the phone.
- It provides a payment of $2,000 for a 4-week period ($500 a week) for up to 16 weeks.
- After you apply, you should get your payment within 3 business days if you signed up for direct deposit. Otherwise, it may take approximately 10 business days before payment is received.
Full details on the scheme and how to apply can be found HERE.
Canada Emergency Wage Subsidy (CEWS)
- This scheme provides for a 75% wage subsidy to eligible employers for up to 12 weeks, retroactive to March 15, 2020.
- The scheme provides a maximum benefit of CA$847 per week.
- To be eligible for the scheme, employers must have seen at least a 30% drop in revenue.
- Subsidy can be applied for via CRA My Business Account or through a new web-based application process.
- Full details on the scheme, how to apply and all qualifying conditions can be found HERE.
Tax filing and payment deadlines for 2019
- For individuals the deadline to file has been extended to 1 June 2020, and the deadline for tax payments has been extended to 1 September 2020.
- If you have received a Notice from the CRA to say the deadline for payment is 30 April 2020, you can ignore this.
Denmark
- Companies who do not pay their A-tax or labor market contributions on 31 March 2020 and 14 April 2020 as a result of the current COVID-19 situation, and who arrange the payment immediately after it ceases, can apply to the Tax Board for exemption from interest payments and fees charged to A-tax and am-contributions. The application can be made along with the payment.
- Company’s disclosure deadlines for 2019 have been extended. More detailed information can be found HERE.
The Danish Government announced the measures they will be taking to help businesses cope with COVID-19. Some key information points to note include:
- April, May and June 2020 payment deadlines for A-tax and Labor Market Contributions is postponed by 4 months.
- April and May 2020 payment deadlines for B-tax is also postponed to 22 June 2020 and 21 December 2020 respectively.
- VAT payments for March, April and May 2020 are also postponed with 30 days.
CLICK HERE to see all information available in relation to Denmark.
Germany
The Federal Ministry of Finance in Germany has announced a number of measures to assist businesses effected by COVID-19. These include:
- Tax payment deferrals are in place for 2020 and can be applied for up until 31 December 2020
- Adjustments to tax prepayments such as income tax and corporation tax can be requested
- Enforcement measures for overdue tax payments will be suspended to the end of 2020
To read more on measures introduced, CLICK HERE.
Ireland
Additional Support for Businesses
On 7 May 2020, Revenue announced additional measures to support businesses experiencing cashflow and trading difficulties arising from COVID-19.
Under the current and earlier provisions announced, interest on late payments of VAT and PAYE (Employers) is suspended for both SMEs (automatically) and larger businesses (on request) as follows:
- PAYE (Employers) liabilities for February to June
- VAT liabilities for January/February, March/April, and May/June
Revenue Guidance on these provisions, outlines the importance of filing tax returns for these periods, even where payment or part payment cannot be made by the relevant due date. Businesses should still file on a ‘best estimates’ basis, where key personnel are unavailable due to COVID-19 to compute the relevant liabilities tax. The facility to self-correct at a later date without penalties being applied can be availed of where a subsequent amendment is found to be required.
Businesses currently dealt with through the Large Corporates Division (LCD) and Medium Enterprise Division (MED), who are experiencing cash flow or trading difficulties, are encouraged to contact the their usual LCD or MED contacts, or to contact the Collector-General’s office through MyEnquiries, which can be accessed through myAccount or ROS.
New Debt Warehousing Scheme
In addition, Revenue has provided further information in relation to the Debt Warehousing Scheme announced on 2 May 2020 which covers VAT and PAYE (Employer) debts associated with the crisis.
Revenue has also confirmed that while the legislation to enact this scheme as announced on 2 May 2020 is pending, Revenue will operate the scheme on an administrative basis. VAT and PAYE (Employer) tax debts ringfenced under the scheme will be warehoused by Revenue for up to 12 months, and no interest will apply for this period. Again, tax returns should continue to be filed for this period.
Further details regarding the terms of the scheme, periods, and interest rates are set out on Revenue’s website and can be found HERE.
Temporary COVID-19 Wage Subsidy Scheme Update
Effective, 4 May 2020, Revenue will calculate the Maximum Weekly Wage Subsidy (MWWS) for each employee based on their Average Revenue Net Weekly Pay (ARNWP) as per Revenue records. Changes to payments have been outlined as follows:
- The subsidy will increase from 70% to 85% for employees with a previous average take home pay below €412 per week
- Up to €350 per week for employees with a previous average take home pay between €412 and €500 per week
- The subsidy remains the same for employees with a previous average take home pay of between €500 and €586 per week, max cap of €410 still applies
- A tiered system has been introduced for employees with a previous average take home pay of over €586 per week, max cap of €350 per week
- Employees who were taking home more than €960 per week may be eligible to participate in the scheme, subject to certain conditions being met
You can find all information related to the Temporary COVID-19 Wage Subsidy Scheme HERE.
COVID-19 Pandemic Unemployment Payment (PUP)
The Irish government have made the following information available in relation to those who have been made redundant as a direct result of COVID-19:
The COVID-19 Pandemic Unemployment Payment is a payment of €350 per week (previously €203 per week) and is being made available to employees and self-employed persons who have lost their job on or after 13 March 2020.
In order to qualify for the payment, all of the following criteria must be met:
- are aged between 18 and 66 years old
- currently living in the Republic of Ireland
- have lost your job due to the COVID-19 pandemic or have been temporarily laid off due to the COVID-19 pandemic
- worked in the Republic of Ireland or were a cross border frontier worker
- are not in receipt of any employment income
In addition, the payment can also be availed of by the self employed, non EU/EEA workers who have lost employment due to COVID-19, students who have lost employment due to COVID-19 and part-time workers.
Payment Options
Payment is made by electronic transfer to accounts held in Irish financial institutions.
Those applying on or after 8 April can also choose to collect their payment in their local post office. You will need to bring a valid ID when collecting payment.
If you were working and were also in receipt of any social welfare payment such as a Carer’s Payment, Working Family Payment, or One-Parent Family Payment, provided you have lost your job due to COVID-19, you can also claim the COVID-19 emergency payment, in addition to retaining your existing welfare payment.
If you have one adult and one or more dependant children you should claim a Jobseeker’s Payment instead of the COVID-19 Pandemic Payment. This is because you can claim an additional allowance for your adult dependant and child dependants, which will bring your weekly payment to in excess of the €350 weekly payment.
How to Apply
The quickest and easiest way to apply for the emergency COVID-19 payment is by applying online at mywelfare.ie.
All you need to apply for the service is a basic MyGovID account and e-mail address. It is very important to to fill in your bank details correctly – include your BIC and IBAN to avoid delays to your payments.
Please be aware applying by post will take longer for your application to be put into payment.
Note: These measures are expected will be in place until at least 8 June.
You can read full details of the Pandemic Unemployment Payment HERE.
Temporary COVID-19 Wage Subsidy Scheme Update
On Wednesday 15 April, the Minister for Finance announced further updates to the Temporary Wage Subsidy Scheme. Key updates are as follows:
- Up until 4 May 2020, the TWSS will refund employers €410 for each qualifying employee.
- From 4 May 2020, the subsidy payment will move to a system based on the previous net weekly pay for each employee.
- Employers should pay the relevant subsidy to each employee, and if making an additional payment, to top up the subsidy, ensure that the total pay does not exceed the average net weekly pay of the employee.
- The TWSS applies both to employers who make additional payments to their employees and those that are not in a position to do so.
- Employers make this subsidy payment to their employees through their normal payroll process.
- Employers will then be reimbursed for amounts paid to eligible employees and notified to Revenue via the payroll process.
- The reimbursement will, in general, be made within two working days after receipt of the payroll submission.
- Income tax and USC will not be applied to the subsidy payment made through the payroll.
- Employee PRSI will not apply to the subsidy or any additional payment by the employer.
- Employer’s PRSI will not apply to the subsidy and will be reduced from 11.05% to 0.5% on the additional ‘top-up’ payment from the employer.
An updated FAQ document has also been available HERE.
Revenue have published a guide to assist employers, payroll operators, agents and other parties on how to operate the measures introduced in the Temporary COVID-19 Wage Subsidy Scheme. CLICK HERE to view the complete guide.
On March 24, Irish Revenue issued new measures to assist employers and employees who are experiencing difficulties due to the impact of COVID-19, including the following:
Temporary COVID-19 Wage Subsidy Scheme
Aiming at financially supporting employees whose income has been adversely effected, the scheme enables employees, whose employers are affected by the pandemic, to receive significant support directly from their employer through the payroll system. The scheme is expected to last 12 weeks from 26 March 2020.
The scheme will be available to employers who are in a position to keep employees on the payroll at this time, meaning employers can retain links with employees for when business picks up. In addition, the operation of the scheme will reduce the burden on the Department of Employment Affairs & Social Protection as they deal with other incoming COVID-19 related payments.
Some important points to note:
- This replaces the previous COVID-19 Refund Scheme and significantly increases the support payment from the original support of €203 per employee per week
- In general, the subsidy refunds qualifying employers up to 70% of the employee’s average net weekly pay (or equivalent for monthly or fortnightly pay frequencies) to a maximum of €410 per week, per employee
- Employers should not pay more than the normal take-home pay
- Employers should use the normal payroll processing to make payment to employees
- The scheme is confined to employees who were on the employer’s payroll as at 29 February 2020, and for whom a payroll submission has already been made to Revenue in the period from 1 February 2020 to 15 March 2020
Employers must meet a number of criteria in order to qualify for the scheme including:
- Be experiencing significant negative economic disruption due to COVID-19
- Be able to demonstrate to Revenue a minimum of 25% decline in turnover
- Be unable to pay normal wages and outgoings in full
- Will retain employees on the payroll
- Make best efforts to maintain a significant, or 100%, income for the period of the subsidy.
To read more about the scheme CLICK HERE.
Compliance of reporting and filing obligations and the satisfaction of other tax related conditions (Particularly relevant for companies with globally mobile workforce)
Guidance has been released in relation to compliance of certain reporting and filing obligations and the satisfaction of other tax related conditions. In all cases where restrictions imposed by COVID-19 affect the applicability of Irish tax legislation on an employee/employer’s tax position, records should be maintained outlining the circumstances and be made available to Revenue on request. Revenue guidance is available on the following:
- Real-time foreign tax credit (FTC) for Restricted Stock Unit (RSU) cases
- Share schemes filing obligations
- Special Assignee Relief Programme (SARP)
- Trans-Border Workers Relief
- PAYE Dispensation Applications
- Foreign Employments – Operation of PAYE
- PAYE Exclusion Order – Irish Contract of Employment
- Residence rules – Force Majeure circumstances
- Benefit in Kind (BIK) including provision of working equipment and e-Working & Tax
Full details can be found HERE.
For all organizations with operations in Ireland, CLICK HERE to see all COVID-19 related information and advice available from the Irish Revenue.
Netherlands
Moving to the Netherlands a number of measures have been put in place as stated by Business.gov.nl.
Most notably, the Temporary Emergency Bridging Measure for Sustained Employment (NOW-Scheme), which is aimed at supporting employers in paying their employees. This scheme replaces the unemployment benefit during short-time working (wtv) and wage claim compensation will be dependent on the turnover loss. At the moment, this scheme will be available for a 3-month period and may be extended upon review.
Specific to tax, a number of measures have also been introduced including an extension in relation to the payment of income tax, corporate tax, payroll tax, and turnover tax (VAT) as well as no late payment fines for late payment.
CLICK HERE to find more information on measures in place in the Netherlands.
Norway
The Norwegian government have implemented a number of measures to support those effected by COVID-19.
Taxation and Business Support
- The deadlines for the payment of the first VAT has been postponed to 10 June 2020.
- In relation to social security, the deadline for the payment of employer’s contributions has been deferred to 15 August 2020.
- The deadline for the payment of the second corporation tax 2019 instalment for companies is proposed to be deferred to 1 September 2020. It is expected that it will not be necessary to apply to postpone this payment.
- For Corporation tax 2020, regulations have been changed to allow loss-making companies to re-allocate their losses towards previous taxed surpluses.
- A state guarantee scheme has also been introduced for new bank loans to small and medium-sized enterprises suffering losses due to the current crisis.
Further information on all economic measures can be found HERE.
Temporary layoffs and unemployment
- The number of days that an employer is now obliged to pay salary to workers who have been temporary laid-off, is reduced from 15 to 2 days. The stat will take over responsibility for financially supporting employees after 2 days.
- Employees who have been temporary laid-off will retain 100 % of their pay up to 6G (National Insurance basic amount. 1G is NOK 99 858) from day 3 up to and including day 20 of the layoff period.
- Unemployment benefits for those laid-off has been raised to 80% of their income for an income of up to 3G and 62.4% for those incomes between 3G and 6G.
- The minimum reduction in working hours entitling employees to unemployment benefit has been reduced from 50 % to 40 % with effect from 20 March.
Further information on measures in place for temporary layoffs and unemployments can be found HERE.
For detailed information in relation to measures in place in Norway, CLICK HERE.
Sweden
The government will shortly present the proposals in the Sprint Update of the Budget. These are expected to include:
- As it is anticipated that unemployment will rise significantly, unemployment insurance will be adapted meaning that the criteria as to who would be entitled to unemployment benefits will be temporarily relaxed. In addition, the amounts payable will be increased
- Increased funding to be paid to the Swedish public employment service and labor market policy programs
- The income cap for student aid will be temporarily waived so that health and medical students specifically can assist in the health care without their student aid being reduced.
CLICK HERE to read more.
The Government Offices of Sweden has announced the following to support employers and employees during this time:
Crisis package for Swedish businesses and jobs:
The Government intends to cover a major part from the employers’ costs in their aim to ensure employees retain their jobs and the employers remain in business. They will also be covering the entire cost of all sick pay during April and May. You can read more about the crisis package HERE.
Small and medium-sized businesses:
Temporary reduction of employers’ social security contributions and individual contributions has been proposed for the period from 01 March to 30 June 2020 provided that the employee and employer meet relevant conditions. You can read more about support in place for SME’s HERE.
Riksbank
In addition to the Government’s measures, the Riksbank has announced that it is loaning up to SEK 500 billion to companies via the banks to preserve credit supply. Finansinspektionen, the Swedish financial supervisory authority, has announced that it is lowering the counter-cyclical capital buffer to zero to uphold a well-functioning credit supply.
United Kingdom
Coronavirus Job Retention Scheme
Information in relation to the Coronavirus Job Retention Scheme has recently been updated as follows:
Who can claim?
Any entity with a UK payroll can apply, including businesses, charities, recruitment agencies and public authorities.
You must have:
- created and started a PAYE payroll scheme on or before 19 March 2020
- enrolled for PAYE online
- a UK bank account
To read more about qualifying to avail of the scheme, CLICK HERE.
Employees related claims
You can only claim for furloughed employees that were on your PAYE payroll on or before 19 March 2020 and which were notified to HMRC on an RTI submission on or before 19 March 2020.This means an RTI submission notifying payment in respect of that employee to HMRC must have been made on or before 19 March 2020.
Employees that were employed as of 28 February 2020 and on payroll (i.e. notified to HMRC on an RTI submission on or before 28 February) and were made redundant or stopped working for the employer after that and prior to 19 March 2020, can also qualify for the scheme if the employer re-employs them and puts them on furlough.
Employees can be on any type of employment contract, including full-time, part-time, agency, flexible or zero-hour contracts. Foreign nationals are eligible to be furloughed. Grants under the scheme are not counted as ‘access to public funds’, and you can furlough employees on all categories of visa.
To be eligible for the grant, when on furlough, an employee cannot undertake work for, or on behalf, of the organisation or any linked or associated organisation. This includes providing services or generating revenue.
Employers are free to consider allocating any business critical tasks to staff that are not furloughed. While on furlough, the employee’s wage will be subject to usual income tax and other deductions.
Before you claim
You need to work out how much you will be able to claim:
Employers should discuss with their staff and make any changes to the employment contract by agreement. Employers may need to seek legal advice on the process. If sufficient numbers of staff are involved, it may be necessary to engage collective consultation processes to procure agreement to changes to terms of employment.
You can find more information on this HERE.
More flexible rules for annual leave
Under the new regulations, employees will be allowed to carry forward most of the leave to which they are entitled, but are unable to take because of COVID-19 into the next two leave years.
Under the Working Time Regulations, employees are generally not entitled to carry forward leave from one leave year to another. The employees protected under those regulations are entitled to 28 days leave (minimum) based on a five–day working week plus 8 further days (in relation to the UK Bank holidays).
At the same time, employers have an obligation to ensure that their workers take their statutory entitlement in any one year. If this does not happen, then the employer could suffer a financial penalty.
Under the new regulations, up to four weeks of unused leave can be carried forward into the next two leave years. The provisions for the carry forward of the additional eight days by one year only will remain unchanged.
For more information CLICK HERE.
Employee expenses
This information is relevant both for employees who are working from home because their usual workplace has closed, and for those who are following advice to self-isolate. However, it is not relevant to those workers eligible for the Job Retention Scheme.
HMRC has advised that the following will be treated as non-taxable benefits for employees:
- Provision of a single mobile phone and SIM card per employee (even where there is no restriction on private use)
- Provision of laptops, tablets, computers and office supplies where they are mainly used for business purposes with no significant private use
- Payment of up to £4 a week (£6 a week from 6 April 2020) to cover additional household expenses whilst working from home
- Payment of approved mileage allowance payments
- Reimbursement of broadband costs, but only where:
- a broadband connection is needed
- the employee did not have one already; and
- private use is limited.
The guidance also sets out that:
- Reimbursement of expenses for office equipment that an employee has bought, or hotel and subsistence costs if an employee needs to self-isolate away from their home, are taxable
- A salary advance or loan to an employee count
Support for self-employed through self employment income support scheme
Self-employed individuals will be able to claim a taxable grant worth 80% of their trading income subject to a cap at £2,500 per month for the coming three months. The period might be extended depending on the development of the current situation.
The UK’s Department for Business, Energy & Industrial Strategy have released guidance on GOV.UK pertaining to support in place for employers and employees effected by COVID-19. Key information shared includes:
- Deferral of VAT payment until 30 June 2020 and Income Tax payments due 31 July 2020 deferred until 31 January 2021. Both are automatically instated with no application required.
- The Bank of England is supporting larger organizations and will buy short-term debt dependent on business eligibility as determined by the bank.
- The time to pay scheme offers support for a business or individual currently unable to pay their tax bill due to COVID-19. You should contact HMRC at 0800 0159 559 to discuss such situations.
Situations that are considered as “exceptional circumstances” for UK tax residence purposes
The guidance states that the following will be considered “exceptional circumstances” for UK residence purposes:
- If the individual is quarantined or advised by a health professional or public health guidance to self-isolate in the UK as a result of the virus
- If the individual is advised by official Government advice not to travel from the UK as a result of the virus
- If the individual is unable to leave the UK as a result of the closure of international borders
- If the individual is asked by their employer to return to the UK temporarily as a result of the virus
It should be noted, however, that “exceptional circumstances” days can be disregarded for certain parts of the UK Statutory Residency Test only.
For more detailed information, please refer to HMRC’s guidance HERE
For full information on all support available to UK businesses CLICK HERE.
United States of America
Economic Impact Payments
Most U.S. residents – under certain income levels – will receive the Economic Impact Payment if they are not claimed as a dependent of another taxpayer and have a Social Security number.
Payments will be as follows:
- Eligible individuals will receive up to $1,200.
- Eligible married couples will receive up to $2,400.
- Eligible individuals will receive up to $500 for each qualifying child.
Taxpayers will receive a reduced payment if their adjusted gross income is between:
- $75,000 and $99,000 if their filing status was single or married filing separately
- $112,500 and $136,500 for head of household
- $150,000 and $198,000 if their filing status was married filing jointly
Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an Economic Impact Payment.
Payments will also be automatic for people who receive Social Security retirement, disability (SSDI), or survivor benefits or Railroad Retirement benefits who don’t normally file a tax return. Those receiving these benefits who are not claimed as a dependent on someone else’s return or required to file a tax return are eligible for a $1,200 payment. However, people in this group who have qualifying children under the age 17 will need to provide information using the “Non-Filers: Enter Payment Info Here” application tool to claim the $500 payment per child.
For additional information and FAQ, visit the IRS.gov website HERE.
Families First Coronavirus Relief Act (FFCRA)
The IRS posted the final version of Form 7200 which is the form designated for employers to request an advance refund of their paid leave credit amount. Full instructions can be found HERE. An FAQ has also been compiled and can be accessed HERE.
CLICK HERE to access the form.
CARES Act Updates
The IRS has released information in relation to the CARES Act and Employee Retention Credits for businesses financially impacted by COVID-19.
This is designed to encourage employers to keep employees on their payroll and states that the refundable tax credit is 50% of up to $10,000 in wages paid by the eligible employer.
More information on eligability and credit calculations can be found HERE.
Paycheck Protection Program (PPP)
The Paycheck Protection Program (PPP) authorized by the CARES Act makes non-recourse forgivable loans of up to $10 million is available to certain qualified small businesses
The IRS has released the following FAQs specific to the CARES Act and the new Paycheck Protection Program – CLICK HERE.
Emergency Loans Small Business Guide
The U.S. Chamber of Commerce prepared a Coronavirus Emergency Loans Small Business Guide and Checklist. You can find information on eligibility, what lenders are looking for and amounts you can borrow HERE.
Moving over to the USA, there has been a number of measures put in place to support business through these unforeseen circumstances. Notable updates include:
The IRS is to provide COVID-19 relief by postponing the April 15 2020 tax return filing and balance due payment deadline by 90 days for all taxpayers
On March 20, 2020, the IRS issued Notice 2019-18 that superseded and expanded the scope of previously issued Notice 2018-17. The effect of the notice is that all income tax returns that are usually due on April 15 can be filed by July 15 without being subject to late filing penalties. The notice also removed the previously announced balance due threshold of $1,000,000 for individual and $10,000,000 for corporate taxpayers.
Application to individual and corporate taxpayers:
The federal relief applies to individual and corporate taxpayers whose 2019 income tax returns are typically due on April 15. In addition to filing their tax returns by July 15, the taxpayers are also allowed to delay until July 15 the payment of their 2019 income tax liability as well as the 2020 1st quarterly estimated tax payment. The delay applies to all taxpayers regardless of their balance due.
However, at this stage there is no specific guidance that the 90-day delay applies to the 2020 2nd quarterly instalment payment which is still due on June 15 2020.
Further clarification of the filing and payment deadlines:
The tax preparers’ community raised a number of questions since the announcement of IRS Notice 2019-18. In response to those questions, the IRS created a Questions and Answers webpage on their website where they clarified a number of details. CLICK HERE to view.
State tax conformity:
It is expected that most States will conform to the federal legislation. However, currently only a handful of States have actually announced their position. The American Institute of Certified Public Accountants (AICPA) is actively monitoring the States’ formal position on conformity. An up-to-date chart detailing each individual State’s position can be found HERE.
Country specific information is changing in line with this ever evolving situation and the team here at Immedis are updating this information as much as is possible. Be sure to check back for the latest information available to us.
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