According to a notice from the Bund der Steuerzahler (German Taxpayers' Association), the accounting procedure is now being revised, as the association had called for substantial improvements.
The following adjustments have apparently now been made:
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Personnel costs are deductible from income: The federal government considered personnel costs to be sufficiently covered by short-time work allowance (Kurzarbeitergeld). However, due to the easing of restrictions, many businesses were able to reopen in May and June. This resulted in liquidity surpluses in the accounting, as revenues were generated but personnel costs could not be taken into account. In future, income will therefore be adjusted by such personnel costs that were necessary to generate this income and that were not covered by other measures (such as Kurzarbeitergeld).
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Deferred payments, such as rent, lease, or leasing instalments that would have been incurred within the funding period, can now also be offset. This ensures that companies which took the initiative to arrange payment deferrals are not disadvantaged.
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Greater flexibility regarding the cash-basis principle: Previously, all actual incoming payments within the funding period were taken into account, even if they related to services rendered before the coronavirus period. This disadvantaged many companies, e.g. in skilled trades or exhibition construction, that work on an invoice basis with payment terms. Companies now have the option, for income received within the funding period, to refer to the date on which the service was rendered.
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High one-off incoming payments within the funding period that relate to an entire past year can now be applied on a pro rata basis. This affects, for example, GEMA payments for artists or VG-Wort payments for journalists.
The response procedure is to be resumed before the autumn holidays. The response deadline has been uniformly extended to 30 November 2020. Any repayments to the account of the relevant Bezirksregierung (district government) specified in the e-mail must be made by 31 March 2021.
We received this notice today from the Bund der Steuerzahler.
Frequently asked questions
Frequently asked questions
Can personnel costs be deducted when settling the Corona emergency aid?
Yes, personnel costs can be deducted retroactively from income, provided they were necessary to generate this income and were not covered by other benefits such as short-time work compensation (Kurzarbeitergeld). This adjustment was made because many businesses reopened after the easing of restrictions in May and June 2020, which would otherwise have resulted in calculated liquidity surpluses.
How are deferred rent, lease or leasing payments accounted for in the proof of use?
Deferred payments such as rent, lease or leasing instalments that would have been due within the funding period can now also be taken into account. This ensures that companies which proactively negotiated deferrals are not disadvantaged compared to others.
What flexibility exists regarding the cash-basis principle in emergency aid (Soforthilfe) settlement?
For revenues within the funding period, companies may choose to use the date of service delivery instead of the date of payment receipt. This particularly benefits sectors such as skilled trades or trade fair construction, which operate with invoices and payment terms and would otherwise be disadvantaged by delayed incoming payments.
How are one-off high incoming payments treated during the funding period?
One-off high incoming payments that relate to an entire previous year may be recognized on a pro rata basis. This applies, for example, to GEMA payments to artists or VG Wort payments to journalists, which would otherwise have flowed disproportionately into the funding period.
What deadlines apply to the reporting and repayment of the Corona emergency aid?
The reporting deadline has been uniformly extended to 30 November 2020. Any repayments to the account specified in the notice from the competent Bezirksregierung (district government) must be made by 31 March 2021 at the latest.