tax measures to address the effects of coronavirus€¦ · — federal package of measures to...

Tax measures to address the effects of coronavirus

Last updated: June 2020

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Document Classification: KPMG Confidential

© 2020 KPMG AG Wirtschaftsprüfungsgesellschaft, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks of KPMG International.

Overview of coronavirus measures More on p. 031

AgendaTax measures to address the effects of coronavirus

Overview of tax categories More on p. 154

Tax measures in detail More on p. 052

Social security measures More on p. 133

Practical experience and tips More on p. 175

Brief summary More on p. 216

More on p. 24AppendixA

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1. Overview of coronavirus measures (1/2) Tax measures to address the effects of coronavirus

— Federal package of measures to cushion the economic effect of coronavirus— Objective: Companies are to be provided with sufficient liquidity to ensure growth and employment— To be implemented in three pillars:

Measures at federal level

— Reduction of the quorum of employees affected by loss of working hours in companies to as low as 10%

— Negative working time balances will not need to or only partially be built up

— Temporary staff may also receive compensation for reduced working hours

— Complete reimbursement of social security contributions by the German Federal Employment Agency [Bundesagentur fürArbeit (BA)]

— staggered increase of the KUG— Expansion of additional earning

opportunities

— Easier access to low interest loans from KfW (application from 23 March 2020 via the principal/local bank, paid out later from 14 April 2020, necessary documents: description of situation, 2018 financial statements, 2019 preliminary financial statements, liquidity planning for 2020)

— Economic stabilisation fund for major companies: ensuring their liquidity and solvency, to supplement the KfW special programmes (corporate actions, guarantees)

— Support for small businesses, "individual self-employed" and startups

— Easier ways to defer tax— Easier reduction of prepayments— Suspension of enforcement measures

Compensation for reduced hours [KUG] Loans and subsidies Tax measures

Protective shield for Germany

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1. Overview of coronavirus measures (2/2) Tax measures to address the effects of coronavirus

EU measures— Billions of euros made available by the European Commission to support affected sectors of the economy— The European Commission has made the state aid framework more flexible and announced more details for applying the rules— Purchase of government and corporate bonds by the ECB— Loosening of government debt thresholds for EU member states

Further measures by the German federal governmentAct on mitigating the effects of the coronavirus pandemic in civil, insolvency, transformation and criminal procedure law:— Suspension of the obligation to file for insolvency until 30 September 2020— Ensuring the ability of companies, cooperatives, associations and homeowners associations to operate and take decisions also in situations of

limited ability to convene (facilitation of holding annual general meetings as well as shareholders' meetings and members' meetings)— Transformation law: Extension of the deadline for the underlying balance sheet from eight to twelve months— Protection against eviction for tenants of residential and commercial properties due to rent arrears from the period between 1 April and

30 June 2020— Delay of payment or services for consumers and micro entities for certain continuing obligations, such as electricity and telecommunication

services— At least three months' deferral of payment for consumer loans

Measures taken by individual federal states— Immediate financial aid, e.g. Bavaria, Lower Saxony, North Rhine-Westphalia— Loans, e.g. NRW-Bank, WIBank, Nbank— Guarantees, e.g. Bürgschaftsbank Hessen, Niedersächsische Bürgschaftsbank (NBB), NRW-Bank

Further measures

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2. Tax measures in detail (1/8) Tax measures to address the effects of coronavirus

— German Federal Ministry of Finance [BMF] guidance of 19 March 2020 on taxes that are administered by state tax authorities on behalf of the federal government (external link)

— Identical decrees by the highest tax authorities of the federal states of 19 March 2020 on trade tax measures (external link)— BMF: 'Coronavirus' FAQ (tax) (external link)

Deferral of tax— Deferral of tax payable or becoming payable by 31 December 2020— No strict requirements for checking the conditions for deferral— Deferral is to be interest-free "as a rule"— Further requirements:

- For "taxpayers demonstrably affected directly and considerably"- Presentation of circumstances necessary in the request for reduction; however the amounts of individual losses need not be demonstrated- Plausible information that the coronavirus crisis has serious negative effects on the economic situation of the taxpayer is sufficient

— For requests/applications beyond the period until 31 December 2020: specific justification necessary— Request for deferral possible for income tax, corporation tax, church tax, solidarity surcharge and value added tax— Requests for deferral of tax falling due are only possible after it has been assessed— The period of deferral is at the discretion of the competent tax office in each individual case (taking into account the individual requirements and

specific situation); without request for a particular period of deferral, deferrals are initially granted for a period of three months; follow-up deferrals are possible until 31 December 2020 in principle

— Collateral security is usually not necessary


https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/Steuern/2020-04-01-FAQ_Corona_Steuern_Anlage.pdf?__blob=publicationFile&v=19

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Adjustment of advance payments— Adjustment of advance payments of income tax, corporation tax and trade tax upon request until 31 December 2020— Further requirements:

- For "taxpayers demonstrably affected directly and considerably"- Presentation of circumstances necessary in the request for reduction; however the amounts of individual losses need not be demonstrated- Plausible information that the coronavirus crisis has serious negative effects on the economic situation of the taxpayer is sufficient

— For requests/applications beyond the period until 31 December 2020: specific justification necessary— Refers to the reduction of advance payments of income and corporation tax (incl. solidarity surcharge and church tax, if applicable) as well

as reduction of the base amount of trade tax (for the purpose of trade tax advance payments)— If advance payments have already been made for assessment period 2020 (income tax or corporation tax as at 10 March 2020 and/or trade tax

as at 15 February 2020), the reduction may – depending on the taxable income expected for 2020 – have the effect that advance payments already paid are refunded

— In addition, tax offices are to refrain from assessing retroactive advance tax payments until 31 December 2020 for taxpayers considerably and directly negatively affected by the coronavirus crisis

Suspension of enforcement measures— Enforcement measures (such as seizure of accounts) are to be dispensed with until 31 December 2020— In this regard, the penalties for late payment carried into effect in the period between publication of the BMF guidance on 19 March 2020

and 31 December 2020 can be waived — Further requirements:

- Entity liable for tax must be directly and considerably affected- Suspension of enforcement measures, once this becomes known to the tax office through notification by the taxpayer/taxable entity or in

another way— Applies to income tax, corporation tax, solidarity surcharge, church tax, payroll tax and value added tax


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Extension of the deadline for filing tax returns— If tax advisors were not able to file tax returns on time for the 2018 assessment period as a result of the coronavirus crisis – through no fault of

their own – extension of the deadline can be requested retroactively from 1 March 2020— Deadline extensions are initially granted in these cases until 31 May 2020 at the longest— Late filing penalties already assessed in such cases are then waived— Moreover, restitutio ad integrum (means of redress) should be available in the individual case if non-compliance with the legal deadline was

caused by the effects of the coronavirus crisis

Special regulations for cross-border commuters— The BMF would like to come to a temporary consultation agreement with neighbouring states: it is to be prevented that as a result of increased

working from home, salaries and wages become taxable in the country of residence of the cross-border commuter— Cross-border commuters are to be treated during this period as though they have pursued their work as usual at their actual place of work— Agreements already made: Luxembourg, the Netherlands, Austria, Belgium, France (external links)

Tax exemption of special payments up to EUR 1,500— resolution of the Bundestag for an "Act to implement tax measures to overcome the Corona crisis“ (Corona Tax Relief Act) of May 29, 2020

(external link)— Legal regulation of the tax exemption by Section 3 no. 11a EStG; up to now this has only been regulated by BMF guidance of 9 April 2020: Tax

exemption of grants and assistance (external link)— In the period from 1 March until 31 December 2020, employers can provide employees with grants and assistance up to an amount of

EUR 1,500 on a tax-exempt basis in the form of allowances or benefits in kind to cope with the effects of the coronavirus crisis— These must be provided in addition to the salary or wages already owed— However, the BMF FAQ state that only additional payments in context with the Corona crisis are tax exempt


https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/Steuern/Internationales_Steuerrecht/Staatenbezogene_Informationen/Laender_A_Z/Luxemburg/2020-04-06-entlastung-der-grenzueberschreitend-taetigen-arbeitnehmer-innen-im-hinblick-auf-die-massnahmen-zur-bekaempfung-der-Covid-19-pandemie.pdf?__blob=publicationFile&v=1

https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/Steuern/Internationales_Steuerrecht/Staatenbezogene_Informationen/Laender_A_Z/Niederlande/2020-04-08-DBA-Niederlande-Konsultationsvereinbarung.pdf?__blob=publicationFile&v=1

https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/Steuern/Internationales_Steuerrecht/Staatenbezogene_Informationen/Laender_A_Z/Oesterreich/2020-04-16-konsultationsvereinbarung-zwischen-der-bundesrepublik-deutschland-und-der-republik-oesterreich-vom-15-04-2020.pdf;jsessionid=C54F17AF18F2F9F7807A89D84E85DDD1.delivery2-replication?__blob=publicationFile&v=1

https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/Steuern/Internationales_Steuerrecht/Staatenbezogene_Informationen/Laender_A_Z/Belgien/2020-05-07-Belgien-Abkommen-DBA-Konsultationsvereinbarung-Besteuerung-Grenzpendler.pdf;jsessionid=E29D7E1A16CAB676965093DF0B1E9713.delivery1-replication?__blob=publicationFile&v=2

https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/Steuern/Internationales_Steuerrecht/Staatenbezogene_Informationen/Laender_A_Z/Frankreich/2020-05-25-Konsultationsvereinbarung-DE-FR-Covid-19-Besteuerung-Grenzpendler.pdf?__blob=publicationFile&v=2

https://www.bundesrat.de/SharedDocs/drucksachen/2020/0201-0300/290-20.pdf?__blob=publicationFile&v=1

https://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Steuerarten/Lohnsteuer/2020-04-09-steuerbefreiung-fuer-beihilfen-und-unterstuetzungen.pdf;jsessionid=8539798F0DC83D765209924692B52E84.delivery2-replication?__blob=publicationFile&v=2

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Investment tax measures— BMF guidance of 9 April 2020: Investment tax measures to take account of the economic effects of COVID-19 (external link) — For investment funds (mutual funds), passive violation of limits between 1 March 2020 and 30 April 2020 does not constitute a material breach (major

violation) within the meaning of marginal ref. 2.18 of the BMF guidance of 21 May 2019, Federal Tax Gazette [BStBl.] I p. 527, and is not taken into account in the 20-business day limit as defined by marginal ref. 2.19 of this BMF guidance

— For special investment funds, passive violation of limits between 1 March 2020 and 30 April 2020 is not considered a material breach of the investment provisions of Section 26 of the German Investment Tax Act [InvStG]

Encouraging and supporting social commitment during the coronavirus crisis— BMF guidance of 9 April 2020: Tax measures to encourage assistance for those affected by the coronavirus crisis (external link) — Applies to support measures implemented between 1 March 2020 and 31 December 2020 (at the latest)— Simplified process for providing evidence of donations— Fundraising campaigns by non-profit organisations to encourage the assistance of those affected by the coronavirus crisis: use for purposes not

specified in the bylaws— Measures by non-profit organisations to encourage the assistance of those affected by the coronavirus crisis: use of other existing funds that are not

subject to any other specific use— Tax treatment of donations from operating assets: treatment of donation as a sponsoring measure; donations to a business partner; other donations;

treatment of donations at the recipient— Salary/wage donation: not considered taxable salary/wages— Waiver of supervisory board emoluments— Provision of assistance to cope with the coronavirus crisis: allocation to a special purpose enterprise, VAT treatment of materials and equipment, rooms

and facilities as well as free of charge provision of medical supplies and free of charge provision of personnel for medical purposes— Use of funds: losses from taxable commercial enterprises within the meaning of Section 64 of the German Tax Code [AO] and in asset management,

increasing the compensation for reduced working hours and continued payment of the trainer and volunteer fee— Gift tax— Requirement for prompt use of funds, release of reserves and membership fees of tax-privileged corporations (BMF: FAQ "Corona" (taxes))


https://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Steuerarten/Investmentsteuer/2020-04-09-invstementsteuerliche-massnahmen-zur-beruecksichtigung-der-wirtschaftlichen-folgen-der-COVID-19-pandemie.pdf?__blob=publicationFile&v=1

https://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Weitere_Steuerthemen/Abgabenordnung/2020-04-09-steuerliche-massnahmen-zur-foerderung-der-hilfe-fuer-von-der-corona-krise-betroffene.pdf;jsessionid=4A674A148C49EC099B6CFF4DEB2A4C48.delivery1-master?__blob=publicationFile&v=1

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Deadline extension for wage tax registration— BMF guidance of 23 April 2020: Extension of the declaration period for quarterly and monthly wage tax returns during the Corona crisis (external

link)— Upon request, employers can extend the deadlines for submitting wage tax returns during the Corona crisis in individual cases— It is necessary that they themselves or the person responsible for payroll accounting and wage tax returns are demonstrably prevented through

no fault of their own from submitting the wage tax returns on time

Simplified loss off-setting— BMF guidance of 24 April 2020: Application for a flat-rate reduction of 2019 prepayments (external link)— Taxpayers with profit income and/or income from rent and lease who are directly and considerably affected by the coronavirus crisis can apply

for a subsequent reduction of prepayments for income or corporate income tax for 2019 on the basis of a flat rate loss carryback (§ 10d para. 1 sent. 1 EStG)

— The local tax office will assume a direct negative impact, if the 2020 prepayments have been reduced to €0— The flat rate 2020 loss carryback amounts to 15% of the profit income balance and/or the income from rent and lease which have been taken as

a basis for the 2019 prepayments (up to €1m at maximum, respectively up to €2m in case of joint assessment)— The 2019 prepayments will be recalculated and reassessed; a change of the prepayment level will lead to a refund claim— Possibility of deferral within the scope of the 2019 tax assessment; actual subsequent payment of the deferred tax depends on the 2020 tax

assessment


https://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Weitere_Steuerthemen/Abgabenordnung/2020-04-23-verlaengerung-der-erklaerungsfrist-fuer-vierteljaehrliche-und-monatliche-lohnsteueranmeldungen-waehrend-der-corona-krise.pdf?__blob=publicationFile&v=1

https://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Steuerarten/Einkommensteuer/2020-04-24-Corona-Sofortmassnahme-Antrag-auf-pauschalierte-Herabsetzung-bereits-geleisteter-Vorauszahlungen-fuer-2019.pdf;jsessionid=F4683E753B61000023CE81BA624FBFB6.delivery1-master?__blob=publicationFile&v=2

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VAT reduction for gastronomy— resolution of the Bundestag for an "Act to implement tax measures to overcome the Corona crisis“ (Corona Tax Relief Act) of May 29, 2020

(external link)— a temporary VAT reduction for restaurant and catering services provided after June 30th, 2020 and before July 1st, 2021 to 7%; beverages are

still subject to a VAT rate of 19% — The reduced VAT rate currently only applies to take away dishes

Extension of the possibility to carry out reorganization with retroactive effect— resolution of the Bundestag for an "Act to implement tax measures to overcome the Corona crisis“ (Corona Tax Relief Act) of May 29, 2020

(external link)— temporary extension of the possibility to carry out reorganization with retroactive effect to 12 months for tax purposes— this extension leads to a synchronization with the extension of the civil law retroactive period

Tax exemption for employer grants to increase short-time allowance and seasonal short-time allowance— resolution of the Bundestag for an "Act to implement tax measures to overcome the Corona crisis“ (Corona Tax Relief Act) of May 29, 2020

(external link)— In accordance with the social security law, grants from the employer for short-time and seasonal short-time allowance are exempt from tax up to

80 percent of the difference between the target-wage and the actual wage— Prerequisite for this is that such grants are provided for the period 1 March 2020 until 31 December 2020— The tax-exempt grants to increase short-time allowances are to be recorded in the wage account and have been included as a further exclusion

for the annual adjustment of income tax (Lohnsteuer-Jahresausgleich) by companies





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VAT rules for legal entities under public law — resolution of the Bundestag for an "Act to implement tax measures to overcome the Corona crisis“ (Corona Tax Relief Act) of May 29, 2020

(external link)— extension of the existing interim arrangement for the VAT rules for legal entities under public law (Sec. 2b VAT Act) until 31 December 2022

Notifications on cross-border tax arrangements— resolution of the Bundestag for an "Act to implement tax measures to overcome the Corona crisis“ (Corona Tax Relief Act) of May 29, 2020

(external link)— Basis of authorisation for the BMF to implement a possible extension of the deadline under EU law for notifications on cross-border tax

arrangements (Art. 97 Section 33 (5) EGAO) — In view of a possible postponement at EU level, the BMF is already authorised to adopt deviating provisions with regard to notification deadlines

by means of BMF guidance




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— Discretion with regard to deferral and adjustment of advance payments is to be used "as much as possible" (e.g. North Rhine-Westphalia) — Reducing the special prepayments for rolling extension of deadline for advance VAT returns to zero (e.g. North Rhine-Westphalia,

Hesse)— General deadline extension for filing the tax return for 2018 in all cases involving tax advisors until 31 May 2020 (e.g. Hesse), individual

applications for deadline extension are not necessary in such cases; late filing penalties are not imposed in such cases; late filing penalties already assessed or to be assessed until electronic storage of the deadline extension can be waived upon request

Additional measures at state level

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3. Social security measures (1/2)Tax measures to address the effects of coronavirus

Current situation— The entire social security contributions for the current month fall due on the third last banking business day of the month— Payment of penalties for late payment for each new month of late payment of 1%— Calculation of dunning fees in accordance with state or federal enforcement laws— Deferral of contributions to avoid the impending compulsory (legal) enforcement— Deferral only possible by way of reasonable interest and security— Requires considerable hardship: serious financial difficulties due to unfavourable economic conditions— Detailed reasons for the request/application and projection of when payment might be possible must be provided— The competent collecting agency decides on the application in applying professional judgement— Obligation of collecting agency to inform the other social security providers (pension insurance funds and German Federal Employment

Agency) in case of deferral for more than 2 months— Further deferral (for more than 2 months) possible only in consultation with third-party insurance providers

General rules for deferral of social security contributions

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3. Social security measures (2/2)Tax measures to address the effects of coronavirus

Relief for companies during the coronavirus crisis through simplified deferral options— Primarily using the assistance and support measures provided by the German federal government for protection (e.g. grants and loans)— Deferral (of contributions for March and April 2020) possible at the request of employers until the end of May 2020— Provision of security not necessary for this purpose— Detailed reasons for application are replaced by a statement that the employer has suffered a considerable financial loss (loss of revenue) as a

result of the pandemic— No charge of interest for deferral (also applies to contributions that have fallen due prior to March 2020)— No imposition of penalties for late payment and dunning fees— Temporary protection against enforcement measures until May 2020 for all overdue contributions may be possible— Deferral of contribution claims also applies to voluntary contributions to health and nursing care insurance in the so-called

"Firmenzahlerverfahren" (employer-administered payment procedure)— Easier access to deferral also applies to reimbursable contributions, which the employer has to cover exclusively in the event of an employee

receiving compensation for reduced hours— Suspension of the requirement to inform third-party insurers in the case of contribution claims exceeding two months— Agreement with the third-party insurers is considered achieved— Option to reduce contributions for voluntarily health-insured self-employed

— (last) extension of the deferral of social security contributions for May 2020 with modified requirements for the relief

Practical expedients for deferral of contributions (guidance issued by the German National Association of Statutory Health Insurance Funds [GKV] on 24 and 25 March 2020 and 19 May 2020)

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4. Overview of tax categories (1/2)Tax measures to address the effects of coronavirus

For which tax categories can a request for deferral and request for adjustment of advance payments be submitted (1/2)?

Tax DEFERRAL ADVANCE PAYMENT Comments

Relief Competent authority Relief Competent authority

Corporation tax

Yes (BMF guidance 19 Mar 2020)

Tax office Yes (BMF guidance 19 Mar 2020)

Tax office

Income tax Yes (BMF guidance 19 Mar 2020)


Tax office

Trade tax Yes (identical decrees 19 Mar 2020)

Municipality or city states (Berlin, Bremen, Hamburg)

Yes (identical decrees 19 Mar 2020)

Tax office (base amount of trade tax useful) or municipality

Solidarity surcharge

Yes (BMF guidance 19 Mar 2020)


Tax office

VAT Yes (BMF FAQ) Tax office Special prepayment: Yes (BMF FAQ)

Tax office ---

Payroll tax Generally No (tax office) --- --- Berlin tax authorities: deferral in justified exceptional cases

Capital gains tax

No --- --- ---

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4. Overview of tax categories (2/2)Tax measures to address the effects of coronavirus

For which tax categories can a request for deferral and request for adjustment of advance payments be submitted (2/2)?

Tax DEFERRAL ADVANCE PAYMENT Comments

Relief Competent authority Relief Competent authority

Real estate tax

No --- --- --- May be possible in individual cases

Real estate

transfer tax


Inheritance tax


Customs duties

No --- No --- May be possible in individual cases

Import VAT

Unclear Main customs office Unclear Main customs office Customs website: deferral and advance payment: yes

Aviation tax

Unclear Main customs office Unclear Main customs office Customs website/press release of 13 March 2020: deferral and advance payment: yes

Insurance tax

Unclear German Federal Central Tax Office [BZSt]

Unclear --- Press release of 13 March 2020: deferral and advance payment: yes

Energy tax Unclear Main customs office Unclear Main customs office Customs website/press release of 13 March 2020: deferral and advance payment: yes

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5. Practical experience and tips (1/4)Tax measures to address the effects of coronavirus

Check and use tax options— Advance payments and deferrals— Also consider retroactive adjustment of advance payments— Also consider other tax measures to protect liquidity

Be aware of the requirements of tax offices— The requirements differ because the specific requirements are not regulated— Basic trend: discretion is exercised generously — Consulting tax offices personally is generally successful

Submit individual applications! No standardised collective applications (as indicated by the Bavarian tax authorities)

Don't forget to document everything— Document the basis/facts and details for applications as best possible in each individual case— Applicants are under the obligation to rectify inaccurate information/facts and details

'Bottleneck' tax office— Submit applications online— Possible short-term solution: revoke direct debit for tax office and block option to collect at the bank

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Guidance provided by the tax authorities regarding requests for deferral and reductionWhen submitting applications for immediate tax relief, the tax authorities draw attention to the following:— If a request for deferral and request for reduction are submitted for the same applicant, two copies should be submitted because two separate

tax office departments handle the processing of these applications (for submissions in hardcopy)— Requests for deferral of tax already paid must be rejected by the tax authorities because the tax claim has already expired pursuant to

Section 47 AO— Deferral of tax that has not yet been assessed in terms of its amount is not feasible; please do not submit a request for deferral until after the tax

has been declared and assessed— Payroll tax and capital gains tax are not deferrable: deferral is therefore rejected (Section 222 sentences 3 and 4 AO); this also applies to

coronavirus-related cases; respite can be requested in providing detailed reasons, however the same practical expedients for approval do not necessarily apply as for immediate tax relief

— Requests for deferral and reduction of corporation tax must be directed to the competent local tax office

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Check other potential measures to protect liquidity – three examples1) Manage VAT payments

Deferral of VAT— BMF guidance of 19 March 2020: not explicitly mentioned, but: VAT is also a tax that is "administered by the state tax authorities on behalf of

the federal government"— BMF: 'Coronavirus' FAQ (tax): deferral of VAT is possible— Potential distinction: differentiation between VAT payable in arrears (e.g. due to a tax audit, annual return) – in which case deferral might be

easier – and VAT to be regularly declared— The Karlsruhe Regional Tax Office has provided information on simplified requests for deferral of VAT based on advance VAT returns in the

case of SEPA direct debit orders: deferral is only possible if payment has not yet been made. The Karlsruhe Regional Tax Office has published guidance for such a case on its website referring to the already existing option of revoking a SEPA direct debit order in exceptional circumstances for an advance filing period by making an entry under reference number 26 of the advance VAT return

Reduction of the VAT special prepayment in 2020— Upon request, reduction of the special prepayment for rolling extension of the deadline for advance VAT returns, in part or in full, for 2020;

rolling extension of the deadline continues also in the event of a refund— In case of doubt: Consult the competent tax office for the best approach

Adjustment of VAT for doubtful receivablesLowering the basis of assessment for doubtful receivables expected to be (partially) uncollectible

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Manage the filing date for advance returns— Apply for or withdraw rolling extension of the deadline or adjust the advance return period (depending on whether a tax payment or refund is

expected).— Bringing the date of input VAT deduction forward (processing invoices received); delaying the date when VAT is incurred (e.g. by arranging for

services to be accepted later)

2) Deferral of social security contributions— The collecting agency (health insurer) can defer claims for the entire social security contribution,

see guidance on the coronavirus crisis issued by the German National Association of Statutory Health Insurance Funds [GKV] on24 March 2020

3) Manage withholding tax— Determine the withholding tax amounts due for payment and check for any potential tax exemptions— Apply for exemption/reduction of withholding tax

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6. Brief summaryTax measures to address the effects of coronavirus

1. Taxes can make a significant contribution to protecting liquidity— Options and measures should be checked now

2. Keep abreast of current developments— There may be further relief through additional BMF guidance— Additional measures at state level are also possible, e.g. extension of the deadline for filing tax returns (see Hesse for 2018 tax returns in all

cases involving tax advisors until 31 May 2020)— Requires continuous monitoring

3. After the crisis— Applications may have to be adjusted/updated

Thank you!

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or legal entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


www.kpmg.de/socialmedia www.kpmg.de

Your contacts

Gerrit AdrianDirector, TaxT 49 69 [email protected]

KPMG AG WirtschaftsprüfungsgesellschaftTHE SQUAIRE – Am Flughafen60549 Frankfurt

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Appendix: Tax measures at state level (1/3)Tax measures to address the effects of coronavirus

Measures of individual federal states (including application forms) in addition to tax relief available at federal level (1/3)

State(link)

Extension of deadline 2018 tax return

VAT deferral(VAT return/

VAT prepayment)

Reduction of VAT special

prepayment

Additional information Form

Baden-Wuerttemberg

Until 31 May 2020 (max.) upon request(acc. to BMF FAQ)

Yes Yes — Attachment to advance VAT return online (Elster) or hardcopy

— Attachment to VAT special prepayment online (Elster) or hardcopy

Application

Bavaria — Until 31 May 2020 (max.)

— Conclusive reasons for application

Yes Yes — Instructions for VAT special prepayment— Advance VAT return guidance— Deferral explicitly only after assessment— Upon request, deadline extension also for advance

VAT returns and payroll tax applications as at 10 April 2020 by 2 months (max.)

Application

Berlin Application possible Yes (acc. to BMF FAQ)

Yes (acc. to Chamber of Tax Consultants Berlin)

Based on reported experience: possible to file advance VAT return (tax payable) and submit request for deferral at the same time

Application

Brandenburg Until 31 May 2020 (max.) upon request(acc. to BMF FAQ)

Yes (acc. to BMF FAQ)

Yes --- Application

Bremen Until 31 May 2020 (max.) upon request(acc. to BMF FAQ)

Yes Yes(acc. to Bremen Association of Tax Advisors)

--- Application

Hamburg Until 31 May 2020 (max.) upon request(acc. to BMF FAQ)



--- Application

https://finanzamt-bw.fv-bwl.de/,Lde/Steuererleichterungen+aufgrund+der+Auswirkungen+des+Coronavirus

https://ofd-karlsruhe.fv-bwl.de/pb/site/pbs-bw-new/get/documents/mfw/OFD/Dokumente/Aktuelle%20Mitteilungen/Stundung%20-%20Mein%20ELSTER%20-%20Wegweiser%20USt-Voranmeldung.pdf

https://ofd-karlsruhe.fv-bwl.de/pb/site/pbs-bw-new/get/documents/mfw/OFD/Dokumente/Aktuelle%20Mitteilungen/Stundung%20-%20Wegweiser%20-%20Papiervordruck%20USt-Voranmeldung.pdf

https://ofd-karlsruhe.fv-bwl.de/pb/site/pbs-bw-new/get/documents/mfw/OFD/Dokumente/Aktuelle%20Mitteilungen/Erstattung%20Sondervorauszahlung%20-%20Mein%20ELSTER%20-%20Wegweiser.pdf

https://ofd-karlsruhe.fv-bwl.de/pb/site/pbs-bw-new/get/documents/mfw/OFD/Dokumente/Aktuelle%20Mitteilungen/Erstattung%20Sondervorauszahlung%20-%20Papiervordruck%20USt%201%20H%20-%20Wegweiser.pdf

https://finanzamt-bw.fv-bwl.de/site/pbs-bw-fa2/get/documents_E829786391/finanzaemter/Formulare/Steuerzahlung%20Lastschrifteinzug/sonstige/CORONA%20Steuererleichterungen%20aufgrund%20der%20Auswirkungen%20des%20Coronavirus.pdf

https://www.stmfh.bayern.de/service/finanzielle_hilfen/corona_2020/

https://www.finanzamt.bayern.de/Informationen/download.php?url=Informationen/Steuerinfos/Weitere_Themen/Coronavirus/Anleitung_USt-SVZ.pdf

https://www.finanzamt.bayern.de/Informationen/Steuerinfos/Weitere_Themen/Coronavirus/

https://www.finanzamt.bayern.de/Informationen/Formulare/Steuerzahlung/Steuererleichterungen_aufgrund_der_Auswirkungen_des_Coronavirus.pdf

https://www.berlin.de/sen/finanzen/steuern/informationen-fuer-steuerzahler-/artikel.910208.php

https://stbk-berlin.de/wp-content/uploads/2020/03/Sondernewsletter-Corona-Krise-Antrag-auf-Erstattung-der-Umsatzsteuer-Sondervorauszahlungen.htm

https://www.berlin.de/sen/finanzen/steuern/informationen-fuer-steuerzahler-/vordruck-steuererleichterung-corona-be.pdf

https://mdfe.brandenburg.de/media_fast/4055/20200324_Corona_Auf%20Antrag%20Erstattung%20der%20Umsatzsteuer-Sondervorauszahlung.pdf

https://mdfe.brandenburg.de/sixcms/detail.php/947663

https://www.finanzen.bremen.de/startseite/coronavirus-78075

https://stbv-bremen.de/bewaeltigung-der-corona-krise-antraege-auf-erstattung-der-umsatzsteuersondervorauszahlung-bzw-antraege-auf-stundungen/

https://www.finanzen.bremen.de/detail.php?gsid=bremen53.c.78075.de

https://www.hamburg.de/fb/finanzaemter/

https://www.hamburg.de/fb/finanzaemter/

25





State(link)

Extension of deadline 2018 tax return

VAT deferral(VAT return/ VAT

prepayment)

Reduction of VAT special

prepayment

Additional information Form

Hesse — (initially) until 31 May 2020

— without application

Yes Yes — Guidance on tax audits— Upon request, deadline extension also for

advance VAT returns as at 10 April 2020 and 10 May 2020 by 2 months (max.)

— Advance VAT return guidance

Application

Mecklenburg-Vorpommern



Yes --- Application

Lower Saxony Yes, no objection Yes, stricter requirements for VAT deferral

Yes Guidance on donations to the State of Lower Saxony

Application

North Rhine-Westphalia

Until 31 May 2020 (max.) upon request

Yes Yes − Instructions for VAT special prepayment− Upon request, deadline extension also for

payroll tax applications as at 10 April 2020 by 2 months (max.)

− Advance VAT return guidance

Application

Rhineland-Palatinate


Yes Yes Instructions for VAT special prepayment Application

Saarland Until 31 May 2020 (max.) upon request

Yes Yes Exceptional circumstances are also taken into consideration in the advance return procedure

Application

Saxony Until 31 May 2020 (max.) upon request


Yes --- Application

https://finanzen.hessen.de/sites/default/files/media/hmdf/faq_zum_thema_steuern_-_stand_24._april_2020.pdf

https://www.stbk-hessen.de/#stbkAccordion-4714-0

https://finanzen.hessen.de/sites/default/files/media/hmdf/faq_zum_thema_steuern_-_ergaenzende_antragshilfe.pdf

https://www.regierung-mv.de/Landesregierung/fm/Aktuell/?id=158620&processor=processor.sa.pressemitteilung

https://www.steuerportal-mv.de/static/Regierungsportal/Finanzministerium/Steuerportal/Inhalte/Formular%20Steuererleichterung%20-%20Steuerportal.pdf

https://www.mf.niedersachsen.de/startseite/themen/steuern/antworten-auf-haufig-gestellte-steuerliche-fragen-faqs-im-zusammenhang-mit-dem-corona-virus-186548.html

https://www.mf.niedersachsen.de/download/153305/Vorlage_zur_Beantragung_von_Steuererleichterungen_aufgrund_der_Auswirkungen_des_Coronavirus.pdf

https://www.finanzverwaltung.nrw.de/de/steuererleichterungen-aufgrund-der-auswirkungen-des-coronavirus

https://www.finanzverwaltung.nrw.de/sites/default/files/asset/document/anleitung_ust-svz.pdf

https://www.steuerberaterkammer-westfalen-lippe.de/news/news-detailansicht/206-neue-fristverlaengerungsantraege-gespraech-mit-dem-finanzministerium-bringt-neue-hilfen/

https://www.finanzverwaltung.nrw.de/sites/default/files/asset/document/2020-03-19_formularentwurf_final_1seite_kj.pdf

https://www.lfst-rlp.de/fileadmin/user_upload/_temp_/Internet_neu/Steuerliche_Massnahmen_RLP_zur-Beruecksichtigung-Auswirkungen-Coronoavirus_01.pdf

https://www.lfst-rlp.de/fileadmin/user_upload/_temp_/Internet_neu/Anleitung_Verzicht_Erstattung_SV_fuer_Dauerfristverlaengerungen.pdf

https://www.lfst-rlp.de/fileadmin/user_upload/Anlage_3_Antragsvordruck_ausfuellbar.pdf

https://www.saarland.de/ministerium_finanzen_europa.htm

https://www.saarland.de/dokumente/ressort_finanzen/Steuererleichterungen_aufgrund_der_Auswirkungen_des_Coronavirus.pdf

https://www.coronavirus.sachsen.de/steuern-und-finanzen-4134.html?_cp=%7B%22accordion-content-4399%22%3A%7B%221%22%3Atrue%7D%2C%22previousOpen%22%3A%7B%22group%22%3A%22accordion-content-4399%22%2C%22idx%22%3A1%7D%7D

https://www.coronavirus.sachsen.de/download/Formular_zur_Beantragung_von_Steuererleichterungen_aufgrund_der_Auswirkungen_des_Corona-Virus.pdf

26





Saxony-Anhalt




--- Application

Schleswig-Holstein


Yes Yes --- Application

Thuringia Until 31 May 2020 (max.) upon request

Yes Yes --- Application

https://mf.sachsen-anhalt.de/corona-aktuelle-informationen-des-finanzministeriums/

https://mf.sachsen-anhalt.de/fileadmin/Bibliothek/Politik_und_Verwaltung/MF/Dokumente/Steuer/CORONA/2020-03-30_Corona_-_Antrag_Steuererleichterungen_146051.pdf

https://www.schleswig-holstein.de/DE/Landesregierung/VI/Presse/PI/2020/200316_steuerstundungen.html

https://www.schleswig-holstein.de/DE/Landesregierung/VI/_startseite/Artikel2020/I/200324_Steuerstundungen_mat/Formular_Steuerstundungen.pdf?__blob=publicationFile&v=2

https://finanzen.thueringen.de/aktuelles/medieninfo/detailseite/kurzinformationen-und-handlungsempfehlung-fuer-unternehmen-und-steuerpflichtige-die-von-den-auswirku/

https://finanzen.thueringen.de/fileadmin/user_upload/Finanzaemter/Vordrucke/Steuererleichterungen_aufgrund_der_Auswirkungen_des_Coronavirus__TH_.pdf

tax measures to address the effects of coronavirus€¦ · — federal package of measures to...

Documents