NEW: Extension of existing corona aids
Extension of existing tax deferrals and no imposition of arrears interest until 31 March 2021
At present, existing tax deferrals are limited in time until 15 January 2021. This deadline is about to be extended to 31 March 2021. In parallel with the extension or new granting of deferrals until 31 March 2021, no deferral interest and late-payment surcharges are going to be imposed during this period either.
Imposition of arrears interest on subsequent claims for the 2019 assessment is also to be waived, as the imposition of additional claims can have a further aggravating effect on the liquidity of companies.
Retroactive exemption from fees for cancelled events
In order to provide financial relief to organisers particularly affected by the Corona crisis, events cancelled due to COVID-19 (retroactively from 01 March 2020) are to be exempted from the lease-agreement fee.
This shall also apply if the fee debt has already been incurred (breaking the strict deed principle).
Extension of tax benefits for employees despite short-time work, teleworking or quarantine until the end of March 2021
The lump sum for commuters will continue to be granted until the end of March 2021 at the same level as before the COVID-19 crisis, despite teleworking, quarantine or short-time work due to the coronavirus pandemic. In addition, the tax-exempt treatment of allowances (for dirty, dangerous and demeaning work) and bonuses (for overtime) is to continue as before the pandemic, despite teleworking, quarantine or short-time work.
Extension of special payments for short-time work
In the calendar year 2021, too, a flat-rate supplement of 15% is to be considered for periods of short-time work when calculating the one-sixth of the year.
Short-time work affects the calculation of the “one-sixth of the year”. The extension of the preferential taxation is intended to avoid standard-rate taxation of that part of the Christmas bonus that is above the lower (due to short-time work) one-sixth of the year. With taxation at only 6% next year, reduction of current salaries will be averted.
Extension of the exemption from fees
The exemption from fees and federal administrative charges resulting from the management of the COVID-19 crisis situation is to be extended until the end of March 2021.
The exemption from fees covers, for example, guarantees to ensure the liquidity of the companies concerned, or stock contracts concluded to ensure medical supply.
Extension of the alcohol tax exemption for the production of disinfectants
Administrative simplifications related to the consumption-tax-free use of alcohol for production of disinfectants is going be extended until the end of March 2021.
Prolongation of tax benefits for doctors
The (preferential) one-half tax rate on the profit from the sale or abandonment of the business (the ordination) and the building privilege in this context are not to be abolished retroactively despite return from retirement due to the coronavirus crisis.
It is intended not to be detrimental to the preferential treatment if a physician reactivated from retirement generates additional corona-related income (more than € 730 and more than € 22,000 turnover) (also) in 2021.
Continued tax-exempt travel allowance for athletes
It will still be possible to pay tax-exempt flat-rate travel allowances (until 31 March 2021) to athletes, referees and sports support staff (e.g. coaches, masseurs) if the sports facilities are closed due to COVID-19.
Extension of the special arrangements for official acts
The special rules on the performance of official acts such as hearings, taking of evidence and oral proceedings, including the use of appropriate technical facilities, are to be extended until the end of March 2021.
Exemption of vaccines from VAT
Supply, intra-Community acquisition and importation of in vitro diagnostics for and vaccines against COVID-19, as well as other services closely related to such diagnostics or vaccines, will be tax-exempt until 31 December 2022. This applies from the day after the announcement of the relevant amendment to the EU Directive.
Extension until 31 December 2021 of the reduced VAT rate of 5% in the catering, hotel and cultural sectors
In order to further support the catering, hotel and cultural sectors, which have been affected by the COVID-19 crisis particularly severely, the reduced tax rate of 5% is going to be extended until the end of 2021.
In addition, until the end of 2021, all food and drink in the catering sector are going to be subject to this preferential tax rate of 5%. The cultural sector is also going to benefit from the reduced tax rate of 5% for certain turnovers. These relief measures are designed to prevent insolvencies, provide financial support to particularly severely affected companies, and safeguard jobs. These measures will relieve affected companies by some € 1.5 billion.