The Federal Ministry of Finance (BMF) announced further extensions of “Covid‑19” tax relief in a letter dated 18 March 2021. According to this letter, due tax payments can be further postponed and the obligations to prove the taxpayer’s economic burden remain simplified.
The prerequisite for the aforementioned relief is still that the taxpayer must prove to be directly and significantly economically affected by the Covid‑19 pandemic.
The relief originally granted in the BMF letter of 19 March 2020 is now to be reasonably extended again in 2021 in light of the continued considerable economic damage caused by the Covid‑19 pandemic.
Tax deferrals may be applied for until no later than 30 June 2021 with general reference to the taxpayer’s economic burdens due to Covid. This applies to all tax payments due by 30 June 2021. Deferrals will then be granted until 30 September 2021 at the latest.
Subsequent deferrals for tax payments due by 30 June 2021 may be granted in conjunction with instalment payment agreements until 31 December 2021 at the latest.
The tax office will refrain from charging deferral interest on the deferred tax.
Suspension of enforcement
Enforcement measures for taxes due by 30 June 2021 are to be suspended until 30 September 2021 if the tax debtor notifies the tax office of their economic burden as a result of Covid‑19 by 30 June 2021.
An extension of the suspended enforcement measures for tax payments due by 30 June 2021 may be granted in conjunction with instalment payment agreements until 31 December 2021 at the latest.
Late payment surcharges incurred between 1 January 2021 and 30 September 2021 will be waived. A waiver of late payment surcharges is also possible for suspended enforcement until 31 December 2021.
Adjustment of advance payments
Until 31 December 2021, applications for adjustment of advance payments for 2021 income tax or corporation tax can be submitted without strict requirements being imposed, in particular, with regard to proof of the value of the loss incurred.
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