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Library of Knowledge No. 20

Revenue have confirmed the ‘COVID-19 Tax Period’ as January 2020 to June 2020 inclusive.

Businesses impacted by the COVID-19 pandemic have the opportunity to avail of the following arrangements:

• Defer payment of taxes for the ‘COVID-19 Tax Period’ plus 2 months after reopening, if applicable.
• During this period all tax returns should be lodged. Where circumstances arise, an estimated return will be accepted.
• After the initial 2 months of reopening a repayment plan must be submitted to Revenue that meets the cashflow requirements of the business. There will be no interest or penalties applied to this arrangement if paid over a 12 – month period.
• All future taxes must be lodged and paid on time.

Where it is not possible for the business to repay the deferred debt over a 12 – month period an interest rate of 3% will be charged for the repayment period > 12 months.

Note: The normal average interest rate charged by Revenue would be 10% so this is greatly reduced.

Note: Businesses not impacted by COVID-19 are expected to lodge and pay tax liabilities as they fall due. VAT Refunds during the ‘COVID-19 Tax Period’ plus 2 months will not be affected and will be issued promptly by Revenue.

Tax Clearance status’ will not be affected.

This arrangement relates to VAT and PAYE liabilities only. Any businesses having difficulty in meeting payment of other taxes should contact Revenue via MyEnquiries.

The timing addressing the tax liabilities will differ business to business, sector to sector.

See Link: https://www.revenue.ie/en/corporate/communications/documents/tax-debts-warehousing.pdf

Stay safe and well.