Draft Bill for Deadline Extension for Tax Deferrals until End of March 2021

The draft bill of the Act on COVID-19-Tax Measures (“COVID-19-StMG”) shall extend the special tax deferral arrangements introduced because of the measures to combat covid-19 until 31/3/2021.

Current deferrals until 15/1/2021.

Up to now, the special tax deferral arrangements provided for an automatic extension until 15/1/2021 of all deferrals that were granted after 15/3/2020 and whose deferment period originally ended on 30/9/2020 or 1/10/2020. This also included all taxes that were booked or due on the tax account by 25/9/2020, or in case of tax prepayments by 27/11/2020. This deadline is now to be extended automatically from 15/1/2021 up to 31/3/2021, with no additional application being required. Any tax payable falling due between 26/9/2020 and 28/2/2021 shall also automatically be deferred until 31/3/2021 (no additional application required).

Deferrals applied after 1/10/2020.

In addition, the act provides certain facilitations for those deferrals requested in the time between 1/10/2020 and 28/2/2021. In this context, tax authorities are therefore supposed to grant deferral requests mandatorily (no discretion), regardless of whether the immediate payment of the taxes constitutes a significant hardship for the taxpayer or whether the collectability of the taxes would be endangered by the deferral. This facilitation applies to deferment periods until 31/3/2021. Once such a deferral-application is accepted, all further taxes falling due between 1/10/2020 and 28/2/2021 are automatically deferred until 31/3/2021; no additional deferral request is required.

All deferrals as well as the extended payment period stipulated by the act end with the filing of insolvency proceedings on the assets of the taxpayer.

Interest on deferral/ late payment surcharge/interest on deferred tax assets.

Interest on tax deferrals and late payment surcharges shall generally not be imposed until 31/3/2021. In addition, no interest on tax payables from tax assessments shall be imposed for the assessment periods 2019 and 2020.

The draft bill of the COVID-19-StMG is currently being discussed in parliament. Therefore, the legislative approval remains to be seen.

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Robert Rzeszut

Robert Rzeszut

Partner | Deloitte Tax | Telefon: +43 1 537 00 6620 | E-Mail senden

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