New Measures for SMEs31 July, 2020
Law No. 29/2020, of July 31, was published, which approved a set of tax measures to support entities deemed as micro, small and medium-sized enterprises (SMEs) as part of the response to the new SARS-CoV-2 coronavirus and the COVID -19 disease.
Thus, Entities classified as cooperatives or as micro, small or medium-sized enterprises, within the meaning of article 2 of the annex to Decree-Law no. 372/2007, of November 6, thus benefit from the following measures:
- Temporary suspension of payment on account of corporate income tax
Said entities may be exempted from making payments on account of CIT, without limiting the possibility of making such payment, under the terms and within the periods defined by law, taking into account the amendment resulting from Order No. 104/2020 – XXII, of the Secretary of State for Tax Affairs.
- Early return of unused special payments on account
Additionally, the entities covered may request, in 2020, the full reimbursement of part of the special payment on account that was not deducted until the year 2019, without having to comply with the period 90 days foreseen in the CIT Code.
- Maximum time limit for the refund of VAT, CIT and PIT
The law states that whenever the entities covered present a withholding amount (both in CIT and in PIT), of payments on account or of VAT liquidations in excess of the tax due, the respective refund must be made within 15 days after the submission of the respective declaration by the taxpayer.