COVID-19: Government tax responses
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This update is intended to focus solely on the responses that governments have made with regards to individual income taxation as of April 30, 2020. This post is an update of my original article published on March 31, 2020. Numerous notes and locations have been added to this expanded version.
Country-by-country Individual Income Tax Responses
- An 'emergency family income’ one-time payment in the amount of ARS 10,000 for qualified unemployed and low-income workers.
- Temporarily reduced minimum drawdown rates for superannuation.
- Temporary early release of superannuation, up to $10,000 of 2019-2020 superannuation, and $10,000 in 2020-2021.
- $750 tax-exempt payments to social security, veteran, and other income support recipients and concession card holders: first round: 3/31/20, second round: 7/13/20.
- Filing deadline extended to August 31, 2020.
- Automatic two-month extension of tax year 2019: individual income tax return due date moved to May 12, 2020. No penalties or late payment interest will be assessed.
- Deferral of payment of withholding and/or personal income tax for individuals able to demonstrate they are negatively impacted.
- Taxable income support payment to eligible workers with loss of income, CAD 2,000/month, up to four months. In order to receive the payment, an individual must meet the eligibility requirements:
- Have stopped working due to COVID-19, and not have access to paid leave or other income support
- Be sick, quarantined, or taking care of someone who is sick with COVID-19
- Be a working parent who must stay home without pay to care for children
- Be employed, but not being paid because of an employer directive
- Be a wage earner or self-employed individual who would not otherwise be eligible for Employment Insurance
- Not have voluntarily terminated their employment
- The minimum required annual withdrawal payments from Registered Retirement Income Funds (RRIFs) and Registered Pension Plans is reduced by 25% for 2020.
- The goods and services tax (GST) credit is doubled for the 2019-2020 benefit year.
- 6-month suspension on the payment of interest and principal on Canadian student loans, to September 30, 2020.
- Temporary increase of the Child Care Benefit, up to $300 per child.
- Filing deadline extended to June 1, 2020.
Please click here for the complete and up-to-date list:
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COVID-19 and Global Mobility in 2020
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