ECONOMY

Extending benefits and tax breaks

extending-benefits-and-tax-breaks

With the new spike in coronavirus cases wreaking havoc on the economy, the Finance Ministry is considering extending measures in favor of employers and employees.

There will be a third wave of enterprises that will pay only a portion of the prepaid tax for income earned in 2020, or not pay at all, depending on how their income has been affected over the summer.

In the first two phases, the state forfeited about €2 billion in taxes and the amount will rise to €3 billion with the third phase. At the moment, officials say a fourth phase, beyond September, is being contemplated, but this may run afoul of European Union rules, as such measures may be considered state subsidies.

Second, businesses in the sectors of catering, tourism, cultural activities and sports will be given the opportunity to suspend employee contracts for October and November, as they have been especially hit by the pandemic.

Third, unemployment benefits will be extended to August and September, both for short- and long-term unemployed. This measure costs the government about €80 million per month, according to Finance Ministry data.