Russia Providing Debt & Tax Relief To SME’s & Self Employed Due To Covid-19
Russia is providing tax breaks to support workers and small businesses during the Covid-19 pandemic. Incentive payments to social workers shouldering additional workloads due to the pandemic will be exempt from personal income tax, Prime Minister Mikhail Mishustin has stated, while debt that is canceled or forgiven on concessional loans granted to medium and small businesses for the purpose of supporting employment won’t be taxable.
Donations to medical institutions or nongovernmental organizations for the diagnosis and treatment of Covid-19 infections will be deductible from corporate profits, while VAT will not apply to these transactions.
The government last week announced plans to write off all taxes and social levies due in the second quarter of 2020, except VAT, for medium and small businesses, as well as individual entrepreneurs adversely affected by Covid-19. It also moved to refund taxes paid for 2019 by self-employed individuals.
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