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(Further) changes to tax laws on the occasion of the corona pandemic

The legislature as well as the financial administration reacted to the Corona pandemic in the area of ​​taxes through numerous measures. Numerous laws (esp "First Corona Tax Aid Act", "Second Corona Tax Aid Act", "JStG 2020") adopted and BMF letter published, but there will also be further changes in 2021. For example, on February 12, 2021, the Federal Council approved a law by which the tax return deadlines were extended in cases under discussion and on March 15, 2021 approved the "Third Corona Tax Aid Act", which the Bundestag approved a week earlier.

Key points of the "Third Corona Tax Aid Act" are:

  • The extension of the granting of the reduced sales tax rate for restaurant and catering services with the exception of the distribution of beverages until December 31, 2022, previously this exception was only valid until June 30, 2021

  • Payment of a further child bonus in the amount of € 150 in May 2021 for each child entitled to child benefit (Section 66 (1) EStG-E),

  • Further expansion of the loss carryforward for the years 2020 and 2021 by increasing the loss carryforward in the area of ​​income tax and corporation tax to EUR 10 million or EUR 20 million in the case of joint assessment. The same applies to the amount limits for provisional loss carry-back for 2020, §§ 10d, 110 and 111 EStG-E. It remains questionable how effective these changes can be, because the fact remains that a loss can only be carried back to the immediately preceding assessment period. The provisional loss carryforward 2021 will be taken into account in the tax assessment for 2020. There is also the option of applying for the deferral for the additional payment when determining the tax.

By the Law on the extension of the tax return deadlines The deadline for submitting tax returns for the 2019 tax period will be extended by 6 months from the end of February to the end of August 2021. At the same time, the 15-month waiting period that has been in force until now will be extended by 6 months, so that subsequent payments will only arise after 22 months. and reimbursement interest for income, corporation and trade tax 2019 can come (cf. § 233a AO). An extension from the end of July to the end of 2021 is also granted for tax returns from agricultural and forestry businesses. It should be noted that the extensions only apply if the tax returns are prepared by members of the tax advisory professions.

In addition, is aImmediate depreciation for certain digital assets has been introduced. This change was made subordinate to law, i. H. by BMF letter (see also: Immediate depreciation of digital assets - now it's coming).

We will inform you about further changes as soon as possible.

The changes to the tax laws on the occasion of the corona pandemic and changes in 2021 are also part of our Webinars on March 16, 2021. The core topic of this webinar will be "JStG 2020" which includes numerous other legislative changes that are not caused by this pandemic. The law concerns inter alia. the income tax law, but also significantly that Sales tax and non-profit law.