The Minister of Finance is planning further relief because of the corona crisis.
(Photo: AP)
Berlin The Federal Ministry of Finance wants to extend and in some cases even expand numerous tax breaks that were introduced in the wake of the corona crisis. Overall, the relief amounts to at least eleven billion euros. Taxpayers also have time to submit their tax returns. This emerges from a draft bill for the fourth Corona Tax Assistance Act, which the federal cabinet is scheduled to adopt on February 16.
Federal Minister of Finance and FDP leader Christian Lindner tweeted: “People and companies must be relieved in the corona crisis.” That is why a package of measures is now being launched. The financial experts of the coalition partners Greens and SPD have already reported a need for clarification.
Corona bonuses from employers, for example in hospitals, are part of the Corona Tax Assistance Act. You should remain tax-free up to an amount of 3000 euros. Tax subsidies for short-time work benefits are likely to be extended by three months until the end of March 2022. The home office flat rate for employees should apply one year longer until the end of 2022.
The degressive depreciation for movable assets that are purchased in 2022 is also likely to be extended. Companies should be able to better offset previous profits against current losses. This is to be extended until the end of 2023.
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In addition, taxpayers who consult tax advisors should have more time to file their tax returns. “The deadline for submitting tax returns for 2020 in advised cases will be extended by a further three months,” says the letter accompanying the draft law.
Following on from this, the deadline for 2021 and 2022 is also to be extended, “but to a lesser extent”. Taxpayers who consult a tax advisor will then have four months more time for their 2021 tax return. Instead of the end of February 2023, the tax return for the past year does not have to be submitted until June 2023.
Positive effects in 2026
For taxpayers without a tax advisor, the submission deadline is expected to be extended by two months. Instead of the end of July 2022, they only have to submit their tax return at the end of September 2022. If you submit it after this deadline, there is a risk of high penalty interest. For the 2022 tax return, the deadlines are to be extended by the same periods in each case.
Calculated over a period of twelve months, the state will lose 2.6 billion euros as a result of the planned measures. For 2022 to 2026, the experts at the Ministry of Finance calculate with almost eleven billion euros less tax revenue for the federal, state and local governments.
In 2026, the measures are expected to have a positive impact on revenue for the first time. The economy has been supported with such tax relief since the outbreak of the pandemic.
Not included in the current draft are the so-called “super write-offs” with which the new government made up of SPD, Greens and FDP wants to boost the economy. In 2022 and 2023, they are intended to promote investments in climate protection and digitization.
According to finance scientist Frank Hechtner, the fourth Corona Tax Aid Act, which is to be welcomed, is taking effect. The renewed extension of the declining-balance depreciation in combination with the extension of the offsetting of losses could create an impetus for operational investment measures. “However, the extensions of the deadlines are likely to present the tax authorities with new frictions,” said Hechtner.
Lindner has met with reservations from the coalition partners with his planned tax aid. On Thursday, your financial experts argued that there was a need to talk about the most expensive single point, the extension of the degressive depreciation for movable assets. The financial policy spokeswoman for the Greens in the Bundestag, Katharina Beck, told the Reuters news agency: “There is definitely still a need for discussion as to whether this is really the right step in weighing up priorities.”
Beck referred to the plan agreed in the coalition agreement to steer investments in climate protection and digitization with a super write-off. “Continuing the degressive depreciation, as now proposed by the Federal Ministry of Finance, would put an additional burden on the budget of almost ten billion euros over the next four years.”
The SPD’s financial policy spokesman, Michael Schrodi, also referred to the need for clarification in the Federal Government’s departmental vote on the draft law, which has now begun. The Corona Tax Aid Act continues measures that should support the economy and preserve jobs, Schrodi told Reuters. “Whether and to what extent the included updating of the degressive depreciation should supplement or anticipate the investment premium and, above all, what financial total volume and thus reduced income for the federal, state and local governments should be involved, will have to be clarified in the departmental coordination and with the Federal Minister of Finance. “
More: Comment: A signal of stability, please, Mr. Lindner!