News Liquidity Decree
Subject: Decree-Law No. 23 of April 8, 2020, known as the “LIQUIDITY DECREE”
EXPANSION OF THE GROUP OF WORKERS ELIGIBLE FOR SOCIAL SAFETY NET PROGRAMS (Art. 41)
The requirement regarding an employee’s length of service for eligibility for supplementary benefits (CIGO, ordinary allowance, CIGD), which was previously set as requiring a hire date on or before February 23, 2020, has been expanded.
In fact, workers hired up to March 17, 2020.
SUSPENSION OF PAYMENTS FOR COMPANIES AND WORKERS with their headquarters or domicile within the territory of the State (Art. 18)
Subject | Terms of Access Intended Audience | Period Covered by the Suspension | Resumption of Payments |
Suspension of payments: - VAT; - withholdings on income from employment and similar sources, regional and municipal surtaxes; - social social security and welfare contributions, and premiums for mandatory insurance. | A reduction of at least 33% in revenue, compared to the same period of the previous year (March and April). If revenue or compensation exceeds 50 million, the reduction must be at least 50%. | Payments due in April and/or May | The suspended payments must be made by June 30 in a single lump sum or in up to 5 monthly installments of equal amount beginning in June 2020 |
EXTENSION OF THE SUSPENSION OF WITHHOLDING TAX ON INCOME FROM SELF-EMPLOYMENT, OTHER INCOME, AND COMMISSIONS (Art. 19)
Subject | Terms of Access Intended Audience | Period Covered by the Suspension | Resumption of Payments |
Income from self-employment, other income, and commissions | Income or compensation not exceeding 400,000 euros in the tax year preceding the one in progress as of March 17, 2020. Revenues and compensation received during the period are not subject to withholding tax by the withholding agent, provided that in the previous month they did not incur expenses for services rendered as employees or in a similar capacity. Taxpayers who avail themselves of this option must submit a specific declaration stating that their revenues and compensation are not subject to withholding tax pursuant to this provision. | Revenue and compensation received from March 17 to May 31, 2020 | The withholdings made must be paid by the recipient by July 30 in a single payment or in up to 5 equal monthly installments beginning in July 2020 |
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