The companies in catering, tourism and transport sector and other businesses that showed losses in operations due to implementation of coronavirus preventive measures will be exempted from advance payments of personal income tax and profit tax for March, April and May, director of the Public Revenue Office (PRO) Sanja Lukarevska told Wednesday’s press briefing.

She said that the government has adopted a decree on implementation of the Law on Personal Income Tax during the state of emergency which foresees exemption from advance payments of personal income tax for March, April and May 2020, as well as a decree that envisages exemption from advance payments of profit tax for March, April and May 2020.

The only goal of these measures is to help and support every individual and company that are hardest hit by the coronavirus crisis. In order for taxpayers – legal entities to be able to use this measure, they should not pay to dividends to owners, business performance awards (profit sharing, bonus) or other annual awards to employees and taxpayers’ management and supervisory authorities, as of the date of entry into force of this decree until the respective exemption ceases to apply, i.e. by 15 June 2020 as well as not to reduce the number of employees from 26 March 2020 up to three months when decree ceases to apply, except in case of death, retirement or employees’ resignation, Lukarevska said.

She said that this measure may also be used by other taxpayers if their total revenues are reduced by at least 40% in the current month compared to February 2020 or the reduction of total revenues in 2020 is higher by 40% compared to the same period last year as well as if the number of employees who do not work, i.e. not contributing to the economic activity of the taxpayer-employer, is at least 25% of the total number of employees in February 2020 and if the taxpayer closed at least 50% of the sales outlets, where from profit is generated.

The requests will be submitted through the system e-pdd for taxpayers of personal income tax, i.e. e-taxes for taxpayers of profit tax. So far, a total of 370 requests have been submitted to the PRO, Lukarevska said.

The exemption from paying personal income tax, she added, applies to taxpayers generating income from catering, tourism and transport, but also other taxpayers- natural persons generating income from self-employed activity should not reduce the number of employees from 26 March 2020 up to three months when decree ceases to apply ceases to apply, except in case of death, retirement or employees’ resignation. This measure may also be used by other taxpayers if their total revenues are reduced by at least 40% in the current month compared to February 2020 or the reduction of total revenues in 2020 is higher by 40% compared to the same period last year as well as if the number of employees who do not work, i.e. not contributing to the economic activity of the taxpayer-employer, is at least 25% of the total number of employees in February 2020 and if the taxpayer closed at least 50% of the sales outlets, where from profit is generated, Lukarevska noted.