Since the introduction of the government's measures to help entrepreneurs affected by the COVID-19 crisis, more than 185,000 entrepreneurs have been granted deferral of taxes. Since March, entrepreneurs hard hit by the COVID-19 crisis have been able to apply for deferment of payment for various types of tax, such as VAT and payroll tax. They will then be granted a three-month delay or longer if the conditions are met. The deferral scheme can still be used until 1 October 2020.
In addition, until that date, a reduced recovery interest of 0.01% applies. The majority of entrepreneurs who have applied for deferment of payment initially do so for an amount of less than 20,000 euros.
The total amount of deferred payment granted in mid-June was more than EUR 10 billion. The postponement was granted mainly for payroll tax (4 billion euros), VAT (4 billion euros), corporate tax (1.5 billion euros) and income tax and health insurance premiums (700 million euros).
Customization for reimbursement
The Cabinet's measures are aimed at keeping entrepreneurs in business as much as possible. Nevertheless, entrepreneurs will have to pay the deferred taxes again in the long term. The Cabinet wants to help entrepreneurs as best as possible and is therefore looking at diversified repayment options and customization per sector.
Three criteria have been drawn up for elaborating agreements on the payment of tax debts.
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NAZALI TAX & LEGAL |