The "shut down light" again requires some companies to make substantial losses in sales. The federal government is trying to compensate this with the so-called "extraordinary economic aid - November aid".
This is a non-repayable subsidy, the basic conditions of which are explained below:
The interim aid goes into the 2nd round!
First of all, the application deadline for the 1st phase was extended from 31.08.2020 to 30.09.2020! In addition, the coalition committee has decided to extend the application period for the funding months September to December 2020.
As we already announced in our info mail of 16 June 2020, the state decided on interim aid as a further measure in the context of coping with the corona crisis. This includes reimbursement of fixed costs for the period from June to August 2020.
On 29.06.2020, the Bundestag and Bundesrat have now agreed to the reduction in the value-added tax (VAT) for revenues from 01.07.2020 to 31.12.2020 within the framework of the coronavirus economic stimulus package. As there are considerable sources of error in practice regarding taxable rental and leasing relationships, we provide you with the most important information and recommendations for action below.
The coronavirus economic stimulus package has been available as a draft law of the Federal Government since 12.06.2020. It provides for a temporary reduction in value-added tax (VAT) from 19% to 16% and from 7% to 5% for revenues from 01.07.2020 to 31.12.2020. For the detailed questions in practice the draft of a BMF letter was published today.
In the following, we present a few essential principles.
On 03.06.2020 our German parliament launched the next measures to strengthen the conjuncture and to "unleash" the economy as a coronavirus economic stimulus package.
The main points of the planned measures are listed below in brief:
With this letter we would like to inform you about important changes in tax law concerning the payment and collection of due taxes in times of the coronavirus crisis.
Extension of the deadline for submitting the payroll tax registration
Since the deferral of payroll tax in the сoronavirus period was rejected after initial announcements, the legislator has now created the possibility of extending the deadline for submitting payroll tax registrations. This is an indirect deferral of
Due to the coronavirus crisis, special payments for employees up to an amount of 1,500 Euro will be exempt from tax and social security contributions in 2020.
This was announced by the Federal Ministry of Finance on 03.04.2020.
Anyone who has to look after their own children and cannot go to work because of school or kindergarten closure should be protected against excessive loss of income. The Infection Protection Act was amended for this purpose.
In addition to the deferral of due tax payments, social security contributions can now also be deferred up to and including May upon request.
The prerequisite for the deferral is that the company has serious payment difficulties due to the сoronavirus crisis or would have such difficulties if the contributions had been collected immediately.