, Vienna Blümel: 4.6 billion euros of tax have been deferred - three out of four of applicants are small businesses. 75% of businesses applying for tax deferral are small businesses with an annual turnover of less than 700,000 euros. Tax deferrals have left companies with more than 4.6 billion euros in funds in total.
When the corona crisis began, the Federal Ministry of Finance informed tax offices that coronavirus constitutes a case of hardship. This means that the payment of tax can be postponed without it accruing deferral interest. Many companies are using the tax deferral option during this crisis. The taxpayers concerned can further apply for a reduction in advance payments of income and corporate tax for the calendar year 2020. These applications must likewise be made without delay and can be submitted via FinanzOnline. Deferrals must be applied for promptly at the tax office and include credible substantiation of specific concerns. As of 30th April, 190,504 applications for tax deferral have been received and approved by the tax administration.
“So far, tax deferrals have left companies with 4.6 billion euros in liquidity in total. Three out of four deferrals concern small and micro businesses. It is for these companies in particular that financial leeway is of existential importance in the current situation. We provide targeted, rapid and unbureaucratic assistance, thereby safeguarding jobs and the future of businesses”, said Finance Minister Gernot Blümel, who went on to thank employees in tax administration. “This crisis is a challenge for all the institutions and their employees, who are showing enormous commitment”, he continued.
Currently, 98 percent of applications for tax deferral are being processed by the Federal Ministry of Finance. 75 percent of businesses submitting applications to the tax authorities have an annual turnover of less than 700,000 euros (142,515 applications). A quarter of the total number of tax deferrals applied for comes from micro businesses with an annual turnover of less than 30,000 euros (47,474 applications).
For all questions regarding tax deferrals, the various relief funds and short-time working, the service hotline of the Federal Ministry of Finance will continue to be available on 050/233 77 0. Since its launch last week, 5,600 queries have been answered by email and telephone.