Tax Implications & Coronavirus: Everything You Need to Know

The Covid-19 outbreak not only seems to be causing problems to individuals health wise, but, has also already started to show its negative impact on the world’s economy.

All across the globe, entrepreneurs and businessmen are being forced to consider budget cut, or completely shut down operations just for an unstipulated period in conjunction with the regulations stipulated health bodies such as WHO and the CDC.

The Corona Virus outbreak has already seen prime tourist destinations such as Italy shut down its boarders to visitors while also enforcing mandatory quarantine on all its citizens. The US, one of the super powers known for its resilience has also had to shut down most of its dealings with Europe, and investors are already feeling the effect of this. Schools, shopping malls, businesses have been shut down as people are being advised to avoid large gatherings.

As a precaution to help avoid the spread the spread of the virus, employers all over are being advised to consider allowing their employees works from home if possible, or completely stay away from work until a solution is found. This virus, that doesn’t seem to favor any side, if taking down both the rich and the poor, meaning that both employers and employees are a risk if control measures are not taken.

Tax Implications of the Virus

Economists have already foreseen a global recession due to the negative effect of Covid-19 that has seen employees and their employers being forced to avoid each other just to stay safe. When this happens, it means that billions are set to be lost in revenue which will in turn affect tax collection.

As such, governments are trying to find ways to maneuver the looming tax crisis and it is important for entrepreneurs to stay up to date with changes being made. Some of the measures that investors and entrepreneurs should consider during this crisis include the following:

  • Watch out for, filing extensions, tax reliefs and incentives

The IRS has for instance, already put up a section meant to give relief to businesses and tax payers who will be heavily hit by the corona virus.

The China government has also allowed extension of tax filing deadlines until the crisis is over.

  • Planning and managing your cash flow

Economists have foreseen a fall in cash inflow and it is thus wise for you to manage you cash outflow.

  • Stay updated on new tax policies

No one is certain of the overall effect that this crisis or how long it will last, and it is therefore necessary to stay updated of current changes that may affect taxation.

  • Contract reviews and Re negotiations

Due to the uncertainty that has been brought about by the corona virus crisis, it is wise to consider legal advice before engaging in any huge dealings that attract large risks.

 As such, having a reputable firm like Philip Stein & Associates as your partner during this tough period has never sounded more promising as they are guaranteed to ensure you get the best guidance to help you stay updated.

The firm has over 40 years’ worth of experience in international tax policies and will ensure that you and your investments get to survive through this difficult time by keeping your assets up to date with both local and global policy changes.

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