MEASURES TO ADDRESS THE ECONOMIC CONSEQUENCES OF CORONAVIRUS
The economic situation has changed this year faster than anyone could have expected. Corona affects the economic situation of most of the companies and many companies are now in a situation that’s totally new to them. We at Fiscales support our clients in any possible way to get through these difficult times without permanent damage. Below we’ve presented the reliefs companies can apply for and actions that they can take to ensure the continuity of the business.
REVIEWING THE ECONOMIC SITUATION OF THE COMPANY
The most important thing now is to go through the financial situation of the company. When the overall picture is clear it’s possible to understand and make the actions needed to support the business. With our decades’ experience of financial and tax questions, we can be of huge support to our clients by e.g. scanning the costs and cash flow of the company. One important proactive measure is to negotiate with the main creditors as soon as possible. When needed, we can support you in these negotiations e.g. with the bank.
ADJUSTING AMOUNTS OF TAX PREPAYMENTS AND TAX PAYMENT ARRANGEMENT
If you expect a reduction of profits in 2020, the amounts of tax prepayments should be adjusted to be equivalent to the estimated profit. It’s also possible to get a tax payment arrangement when having temporary financial difficulties.
TRANSFER PRICING, GLOBAL MOBILITY AND VAT OPTIMISATION
Many companies have now economic difficulties that may change the balance of group’s income allocation. Usually it’s the hard times that show the problems in the chosen transfer pricing model. We’re able to help you to modify your group’s transfer pricing model so that the pricing is considered to be arm’s length also for the time being.
The corona situation has changed the plans of many posted workers and other individuals since they haven’t been able to travel the way planned. In many cases this affects their tax liabilities. It’s advisable to analyse the tax status situation as early as possible to avoid any unexpected outcomes.
We can also help our clients to utilize the options of VAT legislation to improve the cash flow situation.
BUSINESS REORGANIZATION
Sometimes it’s not possible to reach a solution by negotiating with the creditors on a voluntary basis. In these situations, it should be reviewed if an official business reorganization could be applied for. In business reorganization an injunction of recovery is present which gives the company time to find the ways to save the healthy part of the business. We help you in all steps concerning business reorganization and we act as liquidators and give auditor’s opinions.
OTHER RELIEFS FOR ENTREPRENEURS AND COMPANIES
- As of the end of December companies will have a possibility to apply for an aid from Valtionkonttori
- Finnvera gives guarantees to bank loans with a lower interest than normally
GUIDANCE IN THE CHANGED ECONOMIC ENVIRONMENT
We help you in all questions you have concerning the economic environment caused by coronavirus. Please contact our specialist Erja Valtare +358 500 789 220 with any questions you have.
