The Finance Minister and Federal Economics Minister on 13 March 2020 presented a package of measures to address the effects of coronavirus (COVID-19).
The measures also include the following tax relief provisions to enhance liquidity for companies:
The agencies that administer the energy tax and air travel tax as well as value added tax (VAT) were directed to grant appropriate relief measures.
Additional measures being discussed include proposals for partial repeal of the solidarity surcharge or improved depreciation schedules, but are not part of the 13 March package of measures. Nevertheless, a coalition committee decided on 8 March 2020 on other tax policy measures to strengthen the economy, such as:
The currently planned tax measures can be implemented through administrative procedures; legislative action is not required. However, coordination with the Länder (Federal states) is necessary and has already been initiated by the Federal Ministry of Finance. Both the package of measures of
13 March 2020 and the coalition decision of 8 March 2020 are available on the website of the Federal Ministry of Finance.
Taxpayers seeking to invoke these relief measures need to submit an application with the responsible tax office.
Read a March 2020 report [PDF 98 KB] prepared by the KPMG member firm in Germany
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor 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. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.