On January 30th, I arrived in Manila to start my recent survey quarter, and the Philippines had just confirmed their first case of COVID-19. I observed what seemed like a swift local response as much of the population was already wearing masks, and hand sanitizer was provided in most hotels and restaurants in the Makati area. One supermarket even advised customers to put on a mask upon entering, but it was not mandatory.
The global COVID-19 pandemic is having a profound impact on all aspects of life: the economy, the healthcare system, and our broader communities. Countries across the globe have been taking immediate action to address the socioeconomic impact of the pandemic, including but not limited to: traveling and gathering restrictions, public funding expenditures, corporate/VAT/self-employment amendments, remote working guidance, and unemployment benefits. This update is intended to focus solely on the responses that governments have made with regards to individual income taxation, as of March 30, 2020.
In this unprecedented time, AIRINC has created a landing page to serve as a hub to help you learn more about how your peers in global mobility are responding to the impact of COVID-19. In addition we will share advice from our team, exchange rate changes, upcoming events, blog posts related to the crisis, and relevant documents. We also plan to add information related to the COVID-19 recovery.
COVID-19 is impacting everyone, everywhere, and its sphere of influence changes almost daily. Of all the places facing change and uncertainty, the airline industry is at the forefront. News of airlines facing bankruptcy and impending doom cloud the headlines globally. As Global Mobility specialists, we examine 110,000 fares on a quarterly basis so that we can deliver our clients the most up-to-date information to support their assignees. Now, more than ever, we know that you need quick answers and accurate estimates to support your international and domestic assignees that need to return home during this sweeping pandemic.
In response to the COVID-19 pandemic, US Treasury Secretary Steven Mnuchin announced on March 20th that the U.S. filing deadline has been postponed from April 15th to July 15th. However, this extension only applies to filing of Federal individual income tax returns; each state is responsible for setting and announcing their own deadlines.
Last quarter, in the early stages of the global COVID-19 outbreak, I was surveying Southeast Asia. At the time of my transit through Kuala Lumpur, AirAsia had recently suspended flights from mainland China, Macau, and Hong Kong. Though normally a carrier that promotes customer self-service, the airline was diverting all travellers from these locations to the check-in counters to undergo screening questions before being allowed to proceed; in fact, they were prohibited from using the automated-check-in machines as you can see in the photo below.
The outbreak of the COVID-19 pandemic has been unprecedented, and its impact to world markets has been reflected in foreign exchange. The impact of COVID-19 touches every part of the economy, and can largely be divided into three categories:
The COVID-19 pandemic is presenting us all with a period of great uncertainty. One thing we have learned from past crises is that we will likely experience economic volatility, including wide exchange rate swings and abnormal patterns of inflation. While these are early days, we have already measured higher rates of inflation in China, as well as significant fluctuations in major currencies. In addition, living conditions have worsened for many across the globe. It is likely economic volatility and restricted lifestyles will be with us for some time.
My primary responsibility is to serve as the strategic point of contact for the AIRINC clients in my region. I work with them to look for ways to help them meet their goals and face their mobility program’s challenges. The COVID-19 outbreak has been a prime example of the latter in 2020. I have been working with clients to ensure they are informed about the conditions facing their assignees and the impacts to the data that they receive from AIRINC – mainly hardship and danger pay.
In response to the COVID-19 pandemic, US Treasury Secretary Steven Mnuchin announced on Friday that the U.S. filing deadline has been postponed from April 15th to July 15th. Taxpayers and businesses will have an extra three months to file returns and make payments without interest or penalties.