Liquidity Measures
Taxation
Government Measure
Deferred payment of (corporate) income taxes and VAT due within 2020 upon request, with no interest in respect of delay
Reduction of advance payments due in 2020 for (corporate) income taxes, trade taxes and VAT upon request
No enforcement measures within 2020 for unpaid (corporate) income taxes and VAT upon request; no late payment fines
Eligibility
Taxpayers affected directly more than insignificantly by COVID-19. Taxpayers that are affected only indirectly by COVID-19 are not eligible. No further guidance is currently available from the fiscal authorities as to how to distinguish between those categories.
Supervising Authority
Tax office overseeing relevant taxpayer; application should be made in written form, no special form requirements
Availability
From 19 March 2020
Government Measure
Reduction of (corporate) income tax payments in 2019 due to expected tax losses in 2020 up to €1m (€2m for couples)
Eligibility
Taxpayers that anticipate a loss in FY2020 due to COVID-19
Supervising Authority
Tax office overseeing relevant taxpayer
Availability
Reduction of (corporate) income tax payments in 2019 due to expected tax losses in 2020 up to €1m (€2m for couples)
Government Measure
VAT reduction for meals in the catering trade from 19 to 7 percent until 30 June 2021 (although no law has been formally passed as yet).
Eligibility
Catering trade taxpayers
Supervising Authority
Tax office overseeing relevant taxpayer
Availability
From 1 July 2020.
Government Measure
Facilitation of certain corporate reorganizations (e.g. transformation of a company into a partnership) in a way that the closing balance sheet of the disappearing entity must not be older than 12 months (currently 8 months) prior to the date when the reorganization is filed at the commercial register
All entities that fall within the scope of the German Tax Reorganization Act
Eligibility
Commercial register, tax office overseeing the relevant taxpayer
Availability
Not yet finalized; potentially for all relevant reorganizations made in 2020 (already now with the possibility to extent such period by the Ministry of Finance)
Subsidies
Government Measure
Maximum amount determined by federal states (e.g. up to €30k in Bavaria and Hesse; up to €25k in Saxony)
The one-time subsidies for small businesses are not subject to refund, but are presumably subject to tax (as yet unconfirmed)
Eligibility
Generally, self-employed persons and small enterprises affected more than insignificantly by COVID-19
Scope of eligible enterprises is determined by federal states (e.g. Bavaria: companies with not more than 250 employees; Hesse: not more than 50 employees)
Supervising Authority
Application organised individually by federal states
Availability
From 30 March 2020
Loans
Government Measure
Federal level: depending on size of the enterprise German state bank KfW takes over up to 90% of the risk of a new loan to be issued by a relationship bank up to €1bn;
Eligibility
Large corporates, SMEs and founders; liquidity needs are COVID-19 based, i.e. the company has not been in financial difficulties prior to 31 December 2019;
Supervising Authority
Relationship bank.
Availability
Available
Government Measure
Federal level: German state bank KfW takes over 100% of the risk
Eligibility
Enterprises with more than 10 employees that have been active on the market at latest since 1 January 2019 and have made profits in the sum for the period 2017-2019 or in 2019;
Supervising Authority
Relationship bank.
Availability
Available
Government Measure
Federal level: economic stabilisation fund provides additional funding for large corporates;
Eligibility
Large corporates only that act in line with good corporate governance, have an impact on the German economy, job market and competition; Federal Ministry of Economics may ask for influence on the borrower, including by way of receiving shares or other means of rights for participation;
Supervising Authority
Federal Ministry of Economics
Government Measure
State level: state banks provide direct funding/guarantees to SMEs depending on state with maximum amounts of up to €10m to €20m.
Eligibility
Founders’ and SME’s liquidity needs are COVID-19 based; i.e. the company has not been in financial difficulties prior to 31 December 2019.
Supervising Authority
State banks.