"Managing through a crisis: tax and legal implications" -- KPMG Global Tax, Legal and Mobility Virtual Meeting, March 24, 2020
The Dutch government has lowered its interest rate to 0.01 percent per year on late tax payments. Many other countries have extended their tax filing dates without the accrual of penalty charges or interest throughout the extension period.
The search for new revenue begins
Now that steps have been taken to support businesses affected by the virus, it is likely that governments and their budgets will be under a great deal of pressure. As the situation settles, they will likely begin to look for ways to increase revenues from sectors where the impact of COVID-19 may be less. Some may even begin to take a closer look at certain sectors where businesses are growing post-virus, such as increasing direct taxation of digital companies in India.
Now, even more than ever, I believe we have an obligation to continue to follow responsible tax principles. Governments are taking extreme measures to support business and they need to continue to behave responsibly when taxpayers are faced with extreme difficulties beyond their control. Likewise, I believe that tax relief is a privilege that should be considered carefully to determine if it is necessary for your business.
The information presented in this was current at the time of writing. However, we recognize that new stimulus packages and economic relief measures are being introduced regularly – throughout the world – in an effort to support commercial enterprises and shore up the nations’ economies. This should bring welcome news to entrepreneurs and other private company owners.
For an overview of tax developments that are being reported globally by KPMG member firms in response to COVID-19, visit our Jurisdictional tax measures and government reliefs in response to COVID-19 webpage.
We at KPMG Private Enterprise understand the potential consequences of the current global health situation for private companies. Writing this from my home in the Netherlands, I encourage you to follow our regular series of blog posts to stay informed about how COVID-19 may affect your business strategy and operations, and to reach out to KPMG Private Enterprise advisers in your country or territory for their guidance. For an additional view on the possible tax implications, you may also want to check out our recent blog on how, “Quarantines might impact tax residency”.
Please visit the KPMG website for a summary of global tax-relief initiatives titled “ COVID-19 Global Tax Developments Summary” (PDF 1.8 MB).
Please visit the KPMG website for a business overview and action checklist titled “Understanding the Implications of COVID-19 for private companies” (PDF 382 KB) and a guide to robust business continuity planning titled “Leading successfully in turbulent times” (PDF 617 KB).