Corono crisis: How can the tax office help?

7. November 2022

in Other

Reading Time: 2 mins read

Currently, there are numerous programs designed to help the self-employed and businesses. You just have to care or be willing to ask for help. But what useful applications can be made to the tax office?

Key Facts

The federal government is improving deferral options for tax payments, including income tax, corporation tax and VAT.
Deferral does not mean remission; entrepreneurs must prove that they are affected.
Adjustment of advance payments for income taxes is possible.
From the end of the year, the enforcement of overdue tax debts is to be waived.
Option to repay the 1/11 payment without losing the permanent extension.
Late payment penalties during this period are to be waived, especially for income tax, corporation tax and VAT.
Similar measures also apply to customs administration, energy tax, air traffic tax and insurance tax.

The federal government is currently improving the options for deferring tax payments for income tax, corporate income tax and sales tax, among others. This gives self-employed people and businesses a break on payments. However, it should be noted that deferred does not mean waived!

In this context, no strict requirements shall be imposed on the approval of the deferral. Companies and self-employed persons must show that they are directly affected. However, they do not have to provide detailed evidence of the value of any damage incurred.

In addition, there is the possibility of adjusting prepayments for income taxes. In addition, the enforcement of overdue tax debts can also be waived until the end of the year.

Another important opportunity to provide liquidity has been given today by a very recent decree of the tax administration. Most companies and self-employed persons are familiar with the so-called 1/11 payment, which is to be paid in advance for the coming year on the basis of the sales tax of the previous year and which grants a so-called permanent extension of the deadline for the sales tax returns. This 1/11 payment is offset in the following year against the sales tax from December of the previous year. As I learned today, it should now be possible, upon application, to receive a refund of the 1/11 payment and still continue to enjoy the granting of a permanent extension. This can quickly mean liquidity of several thousand euros in the very short term.

By the way:

Enforcement of overdue tax debts is to be waived until the end of the year. Late payment penalties that legally accrue during this period are to be waived. This relates to income tax, corporate income tax and sales tax.

The Federal Ministry of Finance has also instructed the Customs Administration, which administers energy tax and air transport tax, among other things, to take similar measures. They also apply to insurance tax and value added tax, insofar as this is administered by the Federal Central Tax Office.

Author: Marian Härtel

Marian Härtel ist Rechtsanwalt und Fachanwalt für IT-Recht mit einer über 25-jährigen Erfahrung als Unternehmer und Berater in den Bereichen Games, E-Sport, Blockchain, SaaS und Künstliche Intelligenz. Seine Beratungsschwerpunkte umfassen neben dem IT-Recht insbesondere das Urheberrecht, Medienrecht sowie Wettbewerbsrecht. Er betreut schwerpunktmäßig Start-ups, Agenturen und Influencer, die er in strategischen Fragen, komplexen Vertragsangelegenheiten sowie bei Investitionsprojekten begleitet. Dabei zeichnet sich seine Beratung durch einen interdisziplinären Ansatz aus, der juristische Expertise und langjährige unternehmerische Erfahrung miteinander verbindet. Ziel seiner Tätigkeit ist stets, Mandanten praxisorientierte Lösungen anzubieten und rechtlich fundierte Unterstützung bei der Umsetzung innovativer Geschäftsmodelle zu gewährleisten.

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