COVID 19 and its International Fiscal Impact
The Coronavirus, identified as COVID 19, has infected more than 251,000 people in about 171 countries around the world.
The number of people who lost their lives exceeds 10,000 and 87,000 are registered, have recovered.
In Spain, the number of people killed by the COVID 19 virus has surpassed one thousand and almost twenty thousand have been identified as infected. For this reason, the Spanish government implemented the following:
- The package of measures is EUR 200 billion, mobilisable to provide.
- Loan guarantees to companies, especially small businesses, which also obtain a moratorium on tax obligations.
- Delayed mortgage payments for families.
Similarly, the case of Italy, where the number of infected persons totals 41,000, is alarming, and has surpassed China in deaths, with a total of 3,405 people.
Under these conditions, Italy HAS SUSPENDED THE PAYMENT OF MORTGAGES TO FAMILIES AFFECTED BY THE VIRUS, as well as to people who were left unemployed as a result of the pandemic. In addition, the following measures were taken:
- A package of measures, known as Cura Italia, includes EUR 10 billion, which is intended to help:
-The labour market.
-Unemployment, including benefits for workers who lose their jobs, has been banned in March and April.
-Strengthening the health system.
In France, the Minister of Finance announced support for small businesses in the payment of electricity, gas and rents, as well as the creation of a €300 billion item to save businesses and prevent their bankruptcy.
For its part, Canada unveiled a package of tax benefits and a billion-dollar stimulus to support small businesses and prevent them from shutting down.
From this paragraph, the information was provided by our ACCOUNTING-FINANCIAL team
In Chile, the following measures were implemented:
- The COVID 19 bonus is a bonus equivalent to the Single Family Allowance (SUF) bonus, which will benefit 2 million people without formal work.
- Postponement of the payment of VAT for the next 3 months, for all companies with sales below UF 350.00, allowing its payment in 6 or 12 monthly installments at zero real interest rate, depending on its size.
- Deferred payment of contributions in April, for companies with sales of less than 350,000 UF and for people with properties with a tax assessment of less than 133 million, the deferred contribution will be paid in three installments with a real interest rate of 0%.
- All the expenses of the companies associated to face the health contingency will be accepted as tax expense.
- Greater flexibilities will be granted in the deadlines for submitting affidavits associated with this year’s rental operation.
The United States of America, through its legislators, approved two projects to deal with the coronavirus COVID 19:
- “Sick leave, family leave” which provides 2 weeks for sick or quarantined sick leave.
- “Paid family leave”, which benefits those who closed their children’s schools and are therefore unable to work.
For its part, the government of Argentina presents a contingency plan to counteract the economic consequences of the coronavirus, among which it presented:
- Tax extensions and wage support for companies in the most damaged sectors. • “soft” credits in the amount of 350 billion peso.
- Freezing of prices of basic basket products.
- For those sectors in which it has had the greatest impact, such as transport, hotel and entertainment, due to closures and quarantines, they should not pay employers’ contributions, The state will also assume part of its salary burden through the Productive Recovery Program.
All of this is aimed at guaranteeing production, work and supply.
What about Mexico, when?
In Mexico, there has been an increase in the number of cases confirmed by COVID 19, the Ministry of Health reported that the number rose to 164 infected people and there is a total of 448 suspects, He also officially announced the first death of a patient infected with Coronavirus, a patient suffering from diabetes and, according to his relatives, he had attended a rock concert on March 3 at the Palacio de los Deportes in Mexico City.
The health security measures that have been taken in our country have been minimal, since the figures have not been as alarming as in many other countries, but, as can be seen, the number is still increasing, In view of this situation, the schools of the national education system have been suspended for one month, as well as the Federation Courts of Justice and some units.
However, the Tax Administration Service, as well as the collection areas of the Mexican Social Security Institute, have not given notice of a work stoppage, given this situation, which implies that the taxpayers’ obligations remain active, and powers to enforce tax credits.
For its part, the National Banking and Securities Commission called for the establishment of infection controls in the workplace, including some protocols to reduce contagion, as well as the establishment of preventive and awareness-raising campaigns in the same way, noted the importance of assessing the responsiveness to implement the Business Continuity Plan, during the time that the contingency plan is maintained, as well as looking for alternate work sites, thus keeping the Banking system in operation.
It is therefore essential to keep abreast of tax obligations in order to avoid incurring fines, surcharges and updates to the Mexican tax system, and it is a priority to be well informed and advised on the matter.