On 1 December 2020, the website of the Federal Ministry of Finance announced the extension of relief measures for taxpayers directly and significantly economically affected by the Covid‑19 pandemic. The provisions laid down in the letter from the Federal Ministry of Finance dated 19 March 2020, which were initially limited to a term ending on 31 December 2020, will thus be extended.
A corresponding letter from the Federal Ministry of Finance is expected to be published during the course of December 2020.
Tax returns for the 2019 calendar year prepared by a tax advisor do not have to be filed until 31 March 2021 (one month extension).
Deferrals of tax payments may be applied for until no later than 31 March 2021, with general reference to Covid‑19-related burdens on the taxpayer. Deferrals will then be granted until 30 June 2021 at the most.
Subsequent deferrals will be granted in conjunction with instalment payment agreements until 31 December 2021 at the most.
It remains to be seen whether the letter from the Federal Ministry of Finance will grant further extensions, for example, to a stay of execution measures. It is also expected that no deferral interest will be charged.
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