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The political decision-makers in Germany are holding out the prospect of aid packages worth billions. Easier access to credit and a new regulation of short-time working benefits are intended to preserve companies and jobs. Genuine tax policy measures, such as tax cuts or a new regulation for dealing with loss carrybacks, are a long time coming and are unlikely to be implemented any time soon.

Tax measures are stillpossible

Nevertheless, it is possible for taxpayers to take measures that at least strengthen their immediate liquidity. The Federal Ministry of Finance has announced that

  • deferrals can be granted under simplified conditions,
  • companies directly affected by the coronavirus will not have to fear any late payment penalties or enforcement measures until the end of the year,
  • the requirements for the adjustment of tax prepayments are lowered.

The communication from the Federal Ministry of Finance can be found here:

https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/Oeffentliche_Finanzen/2020-03-13-Schutzschild-Beschaeftigte-Unternehmen.html

Further measures are possible according to the tax authorities. For example, the deadlines for submitting tax returns could be extended.

Deferrals for sales or wage tax are not currently planned.

What can be done sensibly at the moment?

Affected companies or private individuals should apply for a reduction in advance payments and, if necessary, deferrals. Of course, this does not reduce the tax burden and, as things stand at present, taxes must be paid at the latest after the declaration has been submitted, but you will receive the liquidity that will probably soon be urgently needed.

If you need help with the relevant applications, please contact us.

Update 20.03.2020

In the description of its package of measures, the NRW state government announced that it would reimburse special advance payments for VAT ahead of schedule. Entrepreneurs affected should make use of this if necessary. In other federal states, too, it is advisable to coordinate this option with the tax authorities.

A refund form has also been published, which shows that deferrals should now also be possible for VAT. If you have any questions, please also use our contact form below, the telephone lines are currently overloaded.

Update 23.03.2020

The Free State of Bavaria has now also announced that it will reimburse the special advance payment for VAT.

 

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