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  • Income tax advances

Taxpayers will not have to pay income tax advances due during the pandemic period for the period immediately following a period in which their revenue has fallen by at least 40% compared to the same period in the previous calendar year. The period under consideration is either a calendar month or quarter, depending on which period the taxable entity has designated for paying income tax advances.

Taxpayers must declare non-payment of advances by submitting a declaration that they meet the above conditions. The declaration must be sent to the relevant tax authority no later than 15 days prior to the payment deadline for the relevant income tax advance.

This provision will apply for the first time for income tax advances due in May 2020.

This procedure may also be applied by taxpayers who make income tax advance payments in any other way based on a decision by the tax authority.

  • Deduction of a tax loss

Taxpayers may deduct unapplied tax losses for accounting periods ending in the years 2015 to 2018, in a total amount of EUR 1 million, from the income tax base for the accounting period for which the deadline for submitting an income tax return occurs in the period from 1 January 2020 to 31 December 2020.

Taxpayers whose accounting period coincides with the business year may apply these losses in the tax return for the accounting period ending 31 October 2019 at the earliest.

Tax losses shall be deducted consecutively from the earliest reported tax loss to the most recently reported tax loss.

This new method for deducting losses is not mandatory. If the existing method for deducting losses pursuant to the applicable provisions of Section 30 of the Income Tax Act is more beneficial for taxpayers, tax losses may be deducted using the standard procedure.

  • The portion of income tax paid

The recipient of a portion of paid tax may use the portion of tax received to help mitigate the negative impact of the pandemic, until the end of 2021.

The portion of income tax remitted to a recipient in 2019 can, in connection with the pandemic, be used for purposes pursuant to the special legislation until the end of 2021, with the recipient being required to publish the precise usage of the portion of income tax received in 2019 by the end of May 2022.

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