Flat-rate reduction of advance payments already made for 2019
Entrepreneurs, companies and self-employed persons with income from profits and taxpayers with income from rentals and leases who are negatively affected by the Corona crisis and who expect to incur a loss in 2020 that can be carried back can apply for a reduction in advance income and corporate income tax payments for 2019 that have already been assessed. In this context, even before the assessment of the year 2020, a “loss carryback determined on a lump-sum basis”. in the amount of 15 % of the profit income and/or income from renting and leasing of the year 2019 assessed when determining the advance payments; this “loss carryback” is limited to an amount of 1,000,000 euros or, in the case of spouses, 2,000,000 euros. Taking into account the loss carryback determined on a flat-rate basis, the advance payments for 2019 will be recalculated and any resulting shortfall reimbursed.
If the subsequent income or corporation tax assessment for 2020 does not result in a loss carryback or a lower amount, a corresponding tax arrears payment for 2019 must then be made.
Extension of the deadline for filing wage tax returns
Employers may request an extension of the deadline for filing monthly or quarterly payroll tax returns for a maximum of 2 months.
Since registration taxes, like wage tax, only become due upon submission of the declaration (registration), an extension of the submission deadline also effectively results in a (non-interest-bearing) deferral of the wage tax amounts to be paid.
The prerequisite for the extension of the deadline is that the employer itself or the person entrusted with payroll accounting and payroll tax filing is demonstrably prevented from submitting the filings on time through no fault of their own; the reasons for the prevention must be explained in the application.
Reduction of the sales tax rate in the catering industry
Restaurants, cafés and other catering businesses are to be financially supported, among other things, by a sales tax regulation: For the supply of food within the scope of restaurant services (with the exception of beverages), the following applies for the period from 01.07.2020 until 30.06.2021 instead of the “normal” tax rate (19 %) the reduced Value added tax rate in the amount of 7%.