Following a recent Global Tax & Legal webcast where some of my colleagues presented, I wanted to reflect on some of the key takeaways from that presentation in terms of how they might play out in the world of private companies.
Certainly, the world of business is being kept very busy. Not only are companies assessing the impact of the multitude of changing circumstances created by COVID-19, they are also having to sort through a host of new laws and regulations to determine how they might be affected.
In most countries, the tax authorities have responded quickly to the changing circumstances of people and business by introducing relief measures such as deferred tax filings to reduce the pressures on businesses, tax-rate reductions, and VAT exemptions. In a few cases, such as Australia and Italy, the government has temporarily suspended its tax audits.
Indirect tax relief
Some government indirect tax responses have been limited to a few jurisdictions or selected industries, such as targeted reductions in indirect tax rates for hotels and airlines and accelerated refunds of indirect tax credits in countries such as Indonesia, Australia, and Poland.
More commonly, we are finding countries introducing initiatives, such as those listed in the charts shown below, in an effort to mitigate the impact of COVID-19 on the health of their country’s businesses, including entrepreneurs and other private companies.1