Important Information Regarding the Submission of the Final COVID-19 Settlement
Companies that received economic aid during the COVID-19 pandemic are now facing the final steps in the process. Although the regular deadline for submitting final statements has already passed, there are still options available. The German Association of Tax Advisors, in cooperation with the Federal Ministry for Economic Affairs and Climate Action, has clearly defined the next steps. Below, you will learn what steps need to be taken now.
Background: The Final Settlement of COVID-19 Economic Aid
During the COVID-19 pandemic, various aid programs were introduced to provide financial support to businesses. The final settlement serves as a final review to determine whether the aid received was justified based on the actual revenue losses and costs incurred. Companies are required to submit this settlement to correct any overpayments.
Submission deadline: September 30, 2024
The regular deadline for submitting the final COVID-19 settlement statement expired on September 30, 2024. Businesses that missed this deadline should urgently review the following information to avoid potential repayment demands.
Technical grace period: Until October 15, 2024
Although the official deadline has passed, the digital portal for submitting the final settlement will remain open until October 15, 2024. This additional period allows for the resolution of any technical issues encountered during submission. Companies that have not yet submitted their statements can do so during this period. However, this is not a formal extension of the deadline, but rather a “technical transition period.” Statements submitted by October 15, 2024, will still be accepted by the approving authorities.
Procedure after October 15, 2024
Companies that have not submitted a final statement even after October 15, 2024, will automatically be subject to a hearing procedure. This procedure is necessary because failure to submit the final statement may result in the full repayment of the COVID-19 aid received. Tax advisors and third-party auditors will be notified by email and given a final opportunity to submit the final settlement retroactively by November 30, 2024. During this grace period, a statement explaining the reasons for the late submission is required.
Consequences of Non-Submission
If the final statement is not submitted by November 30, 2024, serious consequences may ensue. In this case, companies must repay the full amount of aid received. A recovery procedure will also be initiated. After November 30, 2024, late submission of the statement will only be possible in exceptionally justified cases and after consultation with the responsible granting authority.
Conclusion: Last Chance to Submit
Although the main deadline for submitting the final COVID-19 settlement statements has already passed, companies still have one last chance to submit their statements by November 30, 2024, and avoid recovery proceedings. Companies that have not yet submitted their final settlement should act quickly now and contact a tax advisor or the relevant authorities if they have any questions to ensure they meet the remaining deadlines.
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