This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).
The content will be updated regularly. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.
The Minister of Finance and Economic Development on 31 March 2020 announced government’s plan for tax relief as part of broad measures to mitigate the impact of the coronavirus (COVID-19) pandemic. The following tax relief is being provided:
Guidance for deferral of income tax payments
The Minister of Finance on 4 May 2020 published guidance—the Income Tax (COVID-19) (Deferment of Self-Assessment Tax) Order, 2020—that provides the mechanisms for deferring the payment of income tax as a relief measure in response to the coronavirus (COVID-19) pandemic.
The guidance in the order is effective retroactively from 1 March 2020 and is subject to ratification of legislation (Emergency Powers (COVID-19) (Amendment) (No. 4) Regulations, 2020) by the National Assembly.
The order stipulates that the rules for the deferral of tax payments apply to taxpayers with businesses that have been adversely affected by the pandemic and resulting lockdown. Taxpayers must satisfy certain requirements in order to qualify for the deferral relief (including, for example, a valid tax clearance certificate and approval by the Commissioner General). Payments that are eligible for this relief include quarterly installments of self-assessment tax and the final top-up payment and estimated annual tax that is payable by an individual or a person other than a company. For late payments of tax, compound interest of 1.5% per month will be imposed on deferred amounts that remain unpaid after 31 December 2021.
Applications need to be made in electronic format to the Commissioner General and clearly state the tax payment in respect of which deferment is being sought. The authorities are to respond to an application within 14 days of submission.