The plenary session of the House of Representatives voted unanimously with 35 votes in favour of two pieces of legislation that extend the periods during which tax relief is granted to businesses.
An amendment to the Value Added Tax Law extends the period of relief for businesses that faced objective difficulties in submitting their tax returns on time and paying the VAT due due to the conditions created by the pandemic.
In particular, the imposition of additional VAT and interest charges for certain categories of economic activity of taxable persons is suspended for the tax periods ending on 31 March 2021, 30 April 2021 and 31 May 2021, provided that the taxable person has submitted a tax return for those periods within the specified period and paid the VAT due by 10 October 2021, 10 November 2021 and 10 December 2021 respectively.
At the same time, a provision has been included to suspend the imposition of additional tax and interest charges and criminal measures for the tax period beginning on 1 October and ending on 31 December 2021, provided that the VAT for that tax period is paid in three equal instalments, on 10 February 2022, 10 March 2022 and 10 April 2022, for businesses falling within the economic activity categories 'restaurants and taverns', 'catering services for various events', 'cafés', 'bars and pubs', 'nightclubs and discotheques' and 'cafeterias'.
At the same time, an amendment to the Income Tax Law was passed to extend the provisions which provide for deductible expenses for investment in innovative small and medium-sized enterprises until 30 June 2024.
Source: CNA
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