California provides additional indirect tax relief to businesses

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December 2020

Overview

The California Department of Tax and Fee Administration (CDTFA) on December 1 announced that business owners needing financial assistance may receive immediate indirect tax relief in the form of automatic filing extensions, interest-free payment plans, or a hiring tax credit of up to $100,000 to offset income or sales and use taxes.

The takeaway

California is providing indirect tax relief for a limited time. Businesses facing financial hardship due to the pandemic should consider whether they are eligible to apply for an interest-free payment plan with the CDTFA and a hiring tax credit to offset income tax or sales and use tax.  While the penalty and interest relief provisions are automatic, we recommend being proactive with the CDTFA to confirm their availability.

Contact us

Peter Michalowski

State and Local Tax Leader, PwC US

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