Reduction of ongoing tax prepayments (applies to corporate income tax, trade tax, personal income tax)
With respect to ongoing tax prepayments, we will of course immediately file applications for reduction or provisional suspension (please contact your responsible Steuerberater (German Certified Tax Advisor) if required, or centrally — 02871/ 27575-20, Nadja Poetzl).
Based on the applications we have already filed, we can already confirm that there have been no issues so far and that the process works smoothly via electronic filing.
Deferral applications (applies to VAT, corporate income tax, trade tax, personal income tax)
Tax deferral applications can also be filed without complications; VAT is also covered here.
VAT — monthly filing extensions for affected businesses available even without paying the VAT special prepayment (1/11); paid amounts can be refunded
The VAT special prepayment (1/11) required for the automatic extension of the VAT return filing deadline (extension by one month, permanently for an entire year) does not currently need to be paid; the extension is granted regardless with immediate effect.
Regarding 1/11 amounts already paid, we have received confirmation from the Finanzamt Borken that an informal application is sufficient and that amounts already paid will be refunded promptly. We will contact our clients in this regard. If you have not yet received any notice from us, please contact your responsible accounting staff member immediately.
We are currently filing the first applications and will keep you informed on how quickly matters progress.
Enforcement measures by the tax office suspended / waiver of late-payment penalties
Enforcement measures by the tax office are currently being suspended, and late-payment penalties are being waived.
Further current information: Federal Ministry of Finance (BMF)
Tax relief for the economy has been adopted at the federal level. The specific arrangements are currently being developed at federal and state level. We will inform you directly as soon as further information is available.
Current (as of 24/03/2020): Social security contributions for employees suspended due to the corona crisis!
Upon application by the employer, social security contributions can be deferred until June.
This covers contributions for health insurance, unemployment insurance, pension insurance and long-term care insurance. These are due on Friday, 27/03/2020! Therefore: file applications quickly — or contact the payroll department as soon as possible. According to the information provided, no deferral interest will be charged.
Frequently asked questions
Frequently asked questions
Can tax prepayments be reduced due to the Corona crisis?
Yes, applications can be filed to reduce or provisionally suspend ongoing prepayments for corporate income tax, trade tax, and personal income tax. These applications can be submitted electronically without complications and are generally processed by the tax authorities quickly and without issues.
Which taxes can be deferred during the Corona crisis?
Deferral applications are possible for VAT, corporate income tax, trade tax, and personal income tax. The application process is straightforward, and VAT is also taken into account.
Does the special VAT prepayment (1/11) still have to be paid?
No, the special VAT prepayment of 1/11 for the permanent filing extension does not currently have to be paid. The one-month filing extension will still be granted. Amounts already paid can be refunded upon informal application to the tax office.
Are enforcement measures and late payment surcharges suspended during the coronavirus crisis?
Yes, the tax authorities are currently refraining from enforcement measures. In addition, late payment surcharges are being waived to provide relief for affected businesses and taxpayers.
Can social security contributions be deferred due to coronavirus?
Yes, employers can apply for a deferral of social security contributions (health, unemployment, pension, and long-term care insurance) until June 2020. No deferral interest will be charged. The application should be submitted promptly, as contributions are regularly due on a monthly basis.