Below we would like to highlight the main tax measures of the economic relief package regarding the second wave of COVID-19 published last week.
As a result of the provision, those taxpayers engaged in
as their main activity (that is at least 30 percent of their revenue derived from this main activity in a 6-month period preceding 11th November 2020), are granted the following reliefs of public duties for November 2020.
Disbursers have no social contribution tax payment obligation after the employed natural persons.
Liable taxpayers have no vocational training contribution payment obligation.
Taxpayers engaged in the above-mentioned activities that are subject to rehabilitation contribution are exempt for one month proportionately and have no more tax advance payment liability for 2020.
If the above activities are carried out by taxpayers subject to small business tax, personal costs are not considered as tax base.
In order to qualify for the tax reliefs, the payer must fulfill the wage payment obligation determined in employment contract that was in force on 11th November 2020, and do not terminate employment contracts by notice in November, provided that without the tax relief it would have dismissed the employee due to the state of emergency, furthermore the taxpayer submit the claim of this exemption to the Tax authority.
Taxpayers engaged in the above-mentioned activities are also eligible for a 50 percent subsidy after the employed natural persons’ wages for November, if the employment status of the natural person is still in effect on the last day of November and the employer fulfill its obligation to pay wage for the employee.
The application must be submitted by the employer at the competent capital or county government agency of its registered seat, permanent establishment, from which the decision will be made within 8 days and the subsidy will be granted subsequently for the employer.
For those, whose actual main activity is
• accommodation (NACE 5510),
• holiday and other short-stay accommodation (NACE 5520),
• camping grounds activities (NACE 5530), or
• other accommodation (NACE 5590)
the State reimburses 80 percent of the net revenue from bookings up to 11th December 2020 that were registered until 8th November 2020 in the National Tourism Data Supply Center.
The condition of the reimbursement is to maintain the employment status of employees employed on 8th November 2020 and pay wage to them in November.
The government regulation, took into effect on 12th November 2020, contains the following facilitations regarding teleworking:
From 14th November 2020, during the effective period of the protective measures for restaurants, 5 percent VAT rate is applicable on those food and beverage sold for take-away or with home delivery, which would be subject to a 5 percent VAT rate in the case of supply of in-house food service activities. The reduced VAT rate can be applied if the conditions for the provision of the services subject to the reduced tax rate were fulfilled before 11th November 2020 by the supplier and would also be fulfilled in the absence of the protective measures. The reduced tax rate cannot be applied to transport fee related to the transaction.
SHOULD YOU HAVE ANY QUESTIONS REGARDING THE ABOVE PLEASE DO NOT HESITATE TO CONTACT US.