Interest-free tax deferrals extended for entrepreneurs 

The draft document “On amendments to the Presidential Decree No. 5978 dated April 3, 2020 “On additional measures to support the population, sectors of the economy and businesses during the coronavirus pandemic” has been announced.

The document is expected to strengthen social protection of the population and ensure the stability of the economy, as well as to support some businesses during the lockdown due to the coronavirus pandemic.

According to the draft decree, in accordance with paragraph 5 of the Presidential Decree No. 5986 dated April 27, 2020 “On additional measures to support the population and businesses during the coronavirus pandemic” in the paragraph 6 of the Presidential Decree No. 5978 “On additional measures to support industries and businesses”, the words “October 1, 2020” are replaced by the words “December 31, 2020.”

Micro-firms, small businesses and individual entrepreneurs whose activities have ceased and (or) whose revenues from the sale of goods (services) decreased by more than 50% compared to the average monthly amount in the first quarter, may receive interest-free deferral of the following taxes until December 31, 2020, by notifying the tax authorities:

on turnover tax, property tax, land tax, water use tax without application to local public authorities - on the condition that they will be paid in equal installments within 12 months;

on social tax - on the condition that it will be paid in equal installments within 12 months.