“LIQUIDITY” DECREE – SUSPENSION OF TAX AND SOCIAL SECURITY CONTRIBUTION PAYMENTS

In brief

Following Covid-19 outbreak, the Government passed a new stimulus decree implementing some extraordinary measures (Law Decree no. 23/2020, effective as from April 8, 2020, so called “Liquidity” Decree).

The Decree introduced a set of measures to support liquidity flows to companies and their operations. In particular:

  • strengthening of the State guarantees to cover bank financing to be granted to large companies and SMEs that have exhausted their capacity to access the Guarantee Fund;
  • tax measures, which include a further suspension of tax and social security payments;
  • guarantee of the business going concern, through a package of measures that have an impact on corporate and bankruptcy law, as well as the postponement for one year of the entry into force of the new Code of Crisis and Insolvency;
  • extension of the Golden Power scope to all sectors considered of strategic importance.

This Tax Alert deals with the suspension of tax and social security contribution payments due on April 16th and May 16th, 2020

The further stimulus measures introduced by the Decree will be the subject of a subsequent Tax Newsletter.

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