State mechanisms to combat COVID-19 influence on the economy of Ukraine
26 March 2020
With COVID-19 continuing to impact people and countries around the world it is crucial to keep up to date with the different relief mechanisms that are implemented by governments in efforts to support businesses. It is likewise important to be aware of the various strategies that have been formulated to ensure that the economy remains steady during the outbreak.
The instruments used by governments comprise new laws and regulations being adopted in an urgent manner, as well as temporarily postponement of VAT payment deadlines. The purpose of the different initiatives is both to mitigate the negative financial consequences for individual businesses and to support the country's economy on a larger scale.
The Danish government, for example, has attempted to mitigate the negative impact on companies’ liquidity by postponing the VAT payment deadline. Germany introduces measures to safeguard liquidity of business, such as easier tax deferrals, postponed outstanding tax payments. Thailand provides reduced payroll tax rates, under the condition that the number of employees is the same as in December. Malaysian government, in addition to reduced personal income tax rates, offers discounts on electricity bills to the tourism industry.
See the «Covid-19: Financial measures to support business and individuals across the globe»
Ukraine, in its turn, has implemented several relief mechanisms in response to the current situation:
- Moratorium on tax audits untill May 31, 2020 (except for VAT refund audit). The pending tax audits shall be suspended till the same date
- Exemption from penalties for tax related violations committed during March - May 2020 (except for VAT, excise tax and some other)
- The filing deadline for the 2019 annual personal income tax return is postponed to July 1, 2020 and the tax payment deadline is postponed to October 1, 2020
- Property tax on non-residential property and land tax is not payable for March-April 2020
- The planned introduction of cash registers for some businesses is postponed till August 2020
We shall keep you informed on any other possible measures.