The following financial aids were adopted on 3 June 2020:
- From 1 July to 31 December 2020, the VAT rate will be reduced from 19% to 16% and the reduced rate from 7% to 5%.
- Within the framework of a “Social Guarantee 2021”, social security contributions are to be stabilised at a maximum of 40%.
- Businesses in particularly strained sectors such as the hotel and catering industry, clubs and bars, travel agencies, showmen, professional sports clubs in the lower leagues will receive additional support of up to €25 billion. Fixed operating costs up to an amount of € 150,000 for the three months June to August 2020 are to be reimbursed.
- 50 billion € will be made available for increased investment in future technologies. This includes the tax research allowance, artificial intelligence, the expansion of the 5G mobile communications standard and modern hydrogen technology.
- The tax loss carryback will be extended for the years 2020 and 2021 to a maximum of €5 million and €10 million (in case of joint assessment) respectively. This carry-back is to be made immediately usable in the 2019 tax return, for example by creating a tax corona reserve.
- As a tax investment incentive, a declining balance depreciation for wear and tear (AfA) with a factor of 2.5 and a maximum of 25% per year for movable fixed assets in the fiscal years 2020 and 2021 will be introduced.
- SMEs that do not reduce their training place offer in 2020 compared to the three previous years will receive a one-time premium of € 2,000 for each newly concluded training contract. This premium will be paid out after the end of the trial period. Such companies that even increase the number of training places on offer will receive € 3,000 for the additional training contracts.
Click here to read the German Source.