In this issue of Tax News for 2020, we summarize the most important changes concerning tax matters and the preparation and filing of the annual financial statements for 2019, introduced by the Act on the Measures and Actions during the State of Emergency declared by virtue of Resolution of the National Assembly dated 13 March 2020 („the Act“).
The Act was finally approved by the National Assembly on 23 March 2020 after the President exercised his right to veto and returned it for further discussion and was promulgated in State Gazette on 24 March 2020.
The Act introduces special provisions concerning the application in 2020 of the Corporate Income Tax Act, the Personal Income Tax Act, the Local Taxes and Fees Act, the Tax and Social Security Procedures Code and the Accounting Act.
Corporate Income Tax Act
Deadline for declaring and payment of tax liabilities
The deadline for filing of the annual tax return under Article 92 of the Corporate Income Tax Act for 2019 and for the payment of taxes declared with it are extended until 30 June 2020.
The same deadline applies with respect to the filing of tax returns and payment of taxes related to (i) ancillary activities within the meaning of the Gambling Act, (ii) revenues of budgetary enterprises, and (iii) operation of ships.
Advance payments for corporate income tax for 2020
The approach with respect to calculation of the advance tax installments for 2020 and the due dates for their payment remain the same. The Act amends the procedure for declaring the advance tax installments which depends on the date of filing of the annual tax return for 2019, as follows:
The advance payments declared with the annual tax return for 2019 may be changed (increased or decreased) by filing a declaration under Article 88 of Corporate Income Tax Act.
Personal Income Tax Act
The deadline for submission of the annual personal income tax return and for payment of the annual tax liability for sole merchants and the persons, who are not registered as traders but are taxed as sole merchants is extended to 30 June 2020. The persons who are entitled to use a 5% deduction from their outstanding tax liability, can utilize it if their tax return is filed and the tax is paid until 31 May 2020.
The deadline for submission of the annual tax return for all other individuals remains unchanged: 30 April 2020. Five percent deduction upon meeting the respective statutory requirements may be used until 31 March 2020.
Local Taxes and Fees Act
A discount of 5% is granted to persons who have paid the real estate tax or the vehicle tax for the whole 2020 up to 30 June 2020. The Act does not contain specific provisions regarding the payment of the garbage collection fees for 2020.
Unchanged deadlines in the tax and social security legislation
Except for the explicitly envisaged changes for 2020, the Act does not change other deadlines and procedures for establishing, declaring, filing, securing and collecting public receivables under the Tax and Social Security Procedures Code, Customs Act, Value Added Tax Act, Corporate Income Tax Act, Personal Income Tax Act, Local Taxes and Fees Act, Social Insurance Code, Health Insurance Code, and the Gambling Act.
Suspension or non-application of certain statutory terms
Until the state of emergency is lifted, certain statutory terms will cease to apply or enforcement proceedings will not be initiated, as follows:
The limitation periods for the establishment of administrative offenses and for the payment of fines and sanctions are not extended and do not cease to run for the period of the state of emergency.
Preparation, signing and publication of the Annual Financial Statements for 2019 in accordance with the Accounting Act:
How can we help?
The team of KPMG remains at your disposal for any inquiries or need of assistance you may have related to the interpretation and application of the Act and the changes introduced therewith.
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