8 Questions & Answers in relation to the 01.05.2020 Legislative Act against Covid-19

The most important arrangements of the 01.05.2020 Legislative Act regarding further measures against the Covid-19 pandemic and the return to the social and economic normality:

Α. Tax measures

• Which tax liabilities does the 25% discount cover in case of timely payment?
  
  A 25% discount applies to assessed liabilities to the tax authorities, which were due from 30.03.2020 to 30.04.2020 and have been paid by the affected businesses within the period from 11.03.2020 until 29.03.2020 (the discount was already provided for payments carried out on 30 – 31 of March).
  
  The discount will be set off against any tax liabilities due as from 01.06.2020 onwards.

• What measures have been adopted in favor of businesses in hospital activities?
  
  For businesses that perform hospital activities the following measures have been adopted:
  
  - The deadline for the payment of tax liabilities, including VAT liabilities, which became or will become due from 01.04.2020 until 31.05.2020, has been extended to 31.08.2020;
  
  - The benefit to set off 25% of the VAT paid until 11.05.2020 against any kind of tax liabilities due from 01.05.2020 onwards;
  
  - the payment deadline of social security contributions for months March and April 2020, is extended until 31.10.2020 and 30.11.2020, respectively;
  
  - the payment deadline of liabilities that fall under a settlement scheme and were due until 30.04.2020 as well as the deadline of any future installment is extended for three months;
  
  - the installment resulting from claw back (mechanism of EOPYY) is reduced by 20% of the difference between the monthly turnover of March, April, May 2020 and that of the same months in the previous tax year.  The reduction should not exceed a certain percentage of labor costs.

Β. Measures for employers - employees

• On what conditions may businesses extend the suspension of employment contracts?
  
  Businesses affected by the coronavirus pandemic may extend the suspension of max. 60% of the employment contracts already suspended. The suspension should not last longer than 30 days and, in any case, not later than 31.05.2020.
  
  Any dismissal of an employee, during this period, is invalid. The employer should maintain the same number of employees for 45 days after the end of the measure.
  
  As regards businesses, whose activity remains locked down by a State decision, the suspension of the employment contracts is extended as long as the activity of the business is shutdown.
  
  
• Should the business pay the salaries in case the suspension of the employment contracts is extended?
  
  No, employees, whose employment contract remains suspended, are entitled to a special state benefit proportional to the days of the suspension of their contract.
  
  However, in case the business exceeds the percentage of 60% and extends the suspension of employment contracts for more employees than allowed, then the business is obliged to pay salaries to the number of employees exceeding the aforementioned limit.
  
  
• May businesses recall the suspension of employment contracts? 
  
  Businesses are allowed to recall the suspension of at least 40% of the employment contracts, which have been suspended, provided that the suspension has lasted at least 15 days.
  
  Employment contracts, whose suspension has been recalled, shall not get suspended again.
  
  The employees are still entitled to a special state benefit, proportional to the days of the suspension.
  
  
• On what conditions is the temporary recall of the employment contracts suspension allowed?
  
  Businesses are allowed to temporarily recall the employment contracts suspension in case emergency situations arise, that may not be postponed.
  
  As soon as the measure of the temporary recall of the suspension ceases, the suspension of the employment contracts continues.
  
  
• How are the working hours of employees adjusted by the new opening hours of businesses?
  
  The working hours of employees are adjusted by the opening hours of the business, provided that the type of their employment contract is not amended

C. Other measures

• What about the deadline for the submission of applications for a debt settlement plan under the scheme of Law 4605/2019 (the so-called primary residence protection regime)?
  
  The deadline for the submission of an application under L. 4605/2019, for a dept settlement plan with protection of the primary residence from seizure is extended until 31.07.2020.