Corona-crisis | Fiscal measures

The impact of the Corona crisis on society and public life in Germany remains enormous. After almost a year since the beginning of the pandemic, no one can foresee what will (still) come or what challenges we will (still) have to face. The Corona crisis brings about a daily need for action for the self-employed and companies and/or their management.

With the Third Corona Tax Assistance Act of 10 March 2021, the German government has once again adopted a further set of measures. By means of an administrative directive at the end of February 2021, the government created the possibility of a so-called “Digital-AfA”; this is intended to provide tax support for employees and employers when equipping a home office.

As a result of amendments to the law or corresponding resolutions, many of the facilitations already adopted for short-time work allowances, claims to subsidies and support programmes to improve liquidity (e.g. KfW-loans), extended deadlines for the obligation to file for insolvency, civil and company law regulations and state compensation obligations as well as, in particular, many tax law measures to ease the burden on affected companies were extended into 2021. The facilitations granted since the beginning of the crisis in the form of extended deferral and limited enforcement measures, adjustment of advance payments for income tax, corporate income tax and trade tax continue to be considerably simplified. The caps on loss carrybacks and provisional loss carrybacks have also been raised again.

With our detailed presentation, we would like to give you an overview and provide needed explanations of the individual measures. At the same time, however, we would like to draw your atten-tion to ongoing developments that repeatedly lead to changes in the legal and tax framework. The overview can therefore only represent a momentary - nonetheless helpful - snapshot.