The most important arrangements of the 30/03/2020 Legislative Act regarding the measures against the Covid-19 pandemic and other urgent provisions:
Is a 25% discount provided in case of timely payment of tax liabilities?
For businesses whose operation has been suspended by the State, those included in the list of affected businesses according to their business activity code (the so-called KAD), employees whose employment contract has been suspended, as well as property lessors who will receive a rent decreased by 40%:
- A 25% discount applies to installments of assessed liabilities to the tax authorities, which are due from 30/03/2020 to 30/04/2020, in case of timely payment. If the liabilities fall under a settlement scheme, a 25% discount applies to the installments of the settlement.
In particular, as regards the tax liabilities of March, that are subject to the 25% discount, the deadline of timely payment is extended until 10/4/2020.
Further clarifications are expected on how the discount mechanism applies.
Does the 25% discount in case of timely payment apply to VAT and withholding taxes?
- VAT and withholding tax liabilities, which have been assessed by the tax authorities and are payable from 30/03/2020 to 30/04/2020 and which do not fall under a settlement scheme, are not subject to the 25% discount or any other discount.
- VAT tax due from 30/03/2020 to 30/04/2020, which is paid in two installments by activating the code 523 in the VAT filing process and which does not fall under a settlement scheme, is not subject to the 25% discount or any other discount.
What about the payment of cheques and other securities?
For the period from 30/03/2020 to 31/05/2020, the deadlines for the expiry and payment of cheques and other securities issued by enterprises whose business activity has been suspended or are included in the list of affected businesses, is suspended for 75 days.
These securities should be electronically transmitted, by those who derive rights or obligations from the security, such as the issuer / recipient / bearer, to the credit institutions within 6 working days as from 30/03/2020 for the enterprises that are already included in the list of affected businesses, and as per the businesses, that are expected to be added in the aforementioned list, within 6 days as from the next day of their inclusion.
The transmission and disclosure of securities according to the aforementioned paragraph is accomplished through a special electronic application of the credit institutions.
What measures have been taken in favor of the securities bearers who are affected from the payment suspension?
The securities bearers, who are not included in the list of the affected businesses at 30/03/2020, may benefit as from 01/04/2020 onwards from the suspension of the deadline for payment of social security contributions and tax liabilities as well as from the discount of 25% in case of timely payment of taxes, under the condition that the aggregate amount of securities, the payment of which is suspended, is higher than 20% of their average monthly turnover of the last tax year. The turnover is calculated on the basis of the total outputs included in initial or amending VAT returns, that have been filed either within or not the prescribed period.
What is the financial state subsidy in the form of a refundable prepayment?
A special financial state subsidy is provided to the affected enterprises in the form of a fully or partially refundable prepayment. The financial support is exempted from tax, seizure and shall not be offset against any liability. A special platform of the Independent Authority of Public Revenues is expected to come into operation (myBysinessSupport), according to a press release, whereby the interested enterprises may be registered from 02/04/2020 until 10/04/2020. Further clarifications are expected to be provided through a Ministerial Decision.
When does a discount apply to social security contributions of affected freelancers?
- A 25% discount is provided for freelancers and self-employed persons in case of timely payment of social security contributions of months February and March 2020. The discount applies to the contribution amount set according to the social security category of the individual.
Which tax deadlines are suspended?
- The deadline for the tax authorities to serve to taxpayers a preliminary or final tax assessment or a fine is suspended until 30/04/2020.
- The imposition of restrictive measures according to the L. 4174/2013 is suspended as long as the operation of the courts operation is suspended.
- The deadline for the taxpayer to file views or pose arguments against the preliminary tax or fine assessment according to the L. 4174/2013 is suspended until 31/05/2020.
- The deadlines for the provision of information, copies of accounting books or other files requested by the tax authorities during an audit are suspended until 31/05/2020.
- The deadlines for filing an administrative recourse or a suspension application according to the L. 4174/2013, which expired or will expire within the period from 11/03/2020 to 31/05/2020 are suspended for 60 days.
- The operation of the Ultimate Beneficial Owners’ Central Register of the L. 4557/2018 is suspended for 3 months as from 30/03/2020.
In addition, the limitation period as regards the right of the tax authorities to issue a tax assessment or a fine, which expires within the period from 30/03/2020 to 31/05/2020, is extended to 31/07/2020.
Are the deadlines of the out-of-court debt settlement mechanism suspended?
- The deadlines for procedural and other actions of the out-of-court debt settlement mechanism under the L. 4469/2017 as well as the debt settlement plan regarding first domicile protection of the debtor under the L. 4605/2019 are suspended for three months as from 30/03/2020, as long as a timely application has been filed for the process.
- The payment of installments within the debt settlement scheme under the provisions of the Laws 4469/2017, 4605/2019 and 3869/2010, is suspended for 3 months in case the debtor is impacted by the COVID-19 crisis. The legal consequences of non-payment do not apply in this case and the total duration of the settlement scheme is not amended.
What about the annual financial statements of listed companies?
- The publication deadline of the annual financial statements of companies whose shares are listed in the Athens Stock Exchange according to the L. 3556/2007 as per the financial year ending at 31/12/2019 is extended until 30/06/2020.
Can the Board of Directors’ meetings be held in an alternative way until 30/06/2020?
Τhe Board of Directors’ meetings of private law legal entities (i.e. including SAs) may take place via teleconference for all the members or part of them, by using any appropriate means of telecommunication. In this case the members’ signatures may be replaced by e-mail exchange or other electronic means. General meetings can also be held via teleconference by virtue of the Legislative Act of 20/03/2020.
