Tax deferrals for companies in times of Corona

On 19 March 2020, the Federal Mini­s­try of Finance (BMF) pub­lis­hed the fol­lo­wing gui­de­li­nes for the defer­ral of taxes to sup­port com­pa­nies in the corona cri­sis:

Several federal sta­tes have already pro­vi­ded app­li­ca­tion forms. Other­wise, accor­ding to the offi­cial press relea­ses, app­li­ca­ti­ons should be made in wri­ting and hand­led unbu­reau­c­rati­cally. It should be noted that the app­li­ca­tion must also include a descrip­tion of the indi­vi­dual eco­no­mic effects of the coro­na­vi­rus on the com­pany con­cer­ned. Even if the tax aut­ho­ri­ties are instruc­ted not to place high demands on this proof, it is nevert­he­less indi­s­pensa­ble in order to docu­ment the direct and not insig­ni­fi­cant impact of the corona cri­sis.

Note

For with­hol­ding taxes, such as income tax and capi­tal gains tax, a tax defer­ral is in prin­ciple not envi­sa­ged. Accor­ding to reports, the finance mini­s­tries of the federal sta­tes, in coor­di­na­tion with the Federal Mini­s­try of Finance, are wor­king on a gui­de­line for the tre­at­ment of income tax, which is expec­ted to be pub­lis­hed shortly. Howe­ver, it may already be pos­si­ble to obtain a sus­pen­sion of exe­cu­tion.

Also pub­lis­hed on 19 March 2020 were identi­cal dec­rees of the sup­reme tax aut­ho­ri­ties of the federal sta­tes on accom­panying trade tax mea­su­res. App­li­ca­ti­ons for defer­ral of trade tax must be sub­mit­ted to the muni­ci­pa­li­ties res­pon­si­ble for trade tax, and merely to the tax office in cases where the res­pon­si­bi­lity for trade tax does not lie with the muni­ci­pa­li­ties (this app­lies in parti­cu­lar to city sta­tes).