The German government is instituting new tax measures to support businesses during the coronavirus pandemic.
- Companies will be able to get reimbursement of tax prepayments already made for 2020 as well as certain taxes paid in 2019, according to an announcement Thursday.
- Tax deferrals may be available upon request through Dec. 30.
- Companies will be able to offset potential losses in 2020 against profits from the previous year. The advance payments for 2019 will be recalculated on the basis of a 15% loss carryback flat rate and any overpayment will be refunded. If the company ends up making a profit in 2020 after all, it will have to re-pay the difference.
- Restaurants’ value-added tax on food will be lowered to 7% from July 2020 through June 2021.
- Employers can request an extension of up to two months to file their quarterly and monthly payroll tax declarations.