Tag: COVID-19
For Businesses and Citizens: The 4th Coronavirus Tax Relief Act
The Fourth Coronavirus Tax Relief Act has been introduced. On February 16, several measures were adopted that will benefit employees and businesses. For example, simplified depreciation rules are intended to ease the financial burden on companies. The goal of this policy is to stabilize the economic recovery and strengthen the economy. Your tax advisor in Düsseldorf and Oberhausen explains the changes in this article.
Costs of COVID-19 testing: Can they be deducted as an extraordinary expense?
In the wake of the COVID-19 pandemic, spending on hygiene and medical products has skyrocketed. In addition to medical masks and disinfectants, COVID-19 tests in particular are among the new expense categories. But how should these expenses be treated for tax purposes? Is it possible to claim them as a “special financial burden” in a private context? The COVID-19 pandemic is a unique and, above all, new situation for all of us. The tax authorities are no exception. As a result, there is still no clear position regarding “special financial burdens.” In this article, we would nevertheless like to take a look at the topic and find an answer based on existing tax legislation. Can COVID-19 tests be claimed as extraordinary expenses?
COVID-19 Crisis: An Explanation of the VAT Cut
The global coronavirus pandemic has completely changed everyday life for everyone. Many businesses are also suffering from the economic impact of the crisis. As we reported on our blog a few weeks ago, the federal government is attempting to help struggling businesses through rapid relief measures. These emergency measures have given many businesses a new lease on life in the short term. Nevertheless, despite the easing of measures to contain the pandemic, a financial crisis persists. To stimulate the economy, the German government passed a comprehensive tax stimulus package on June 12, 2020. A central component of the package is the reduction in the value-added tax (VAT). In this post, we—as tax advisors in Düsseldorf and Oberhausen—will report on the changes.
Coronavirus Crisis: Tax and Economic Relief Measures
As society as a whole battles the COVID-19 crisis in 2020, many businesses and taxpayers are facing financial losses. As a result, many business owners are concerned about their financial security. Fortunately, during an extended crisis such as the one we are currently experiencing, the government is providing support to business owners and taxpayers. A wide range of tax and economic relief measures are being granted in response to the COVID-19 pandemic. In a rapidly evolving crisis, it is difficult to keep track of everything. As tax advisors based in Düsseldorf and Oberhausen, we would therefore like to summarize in this article which relief measures are currently available.
Working from home – a stopgap measure during the crisis and a fundamental work model
The year 2020 had barely begun when the entire world was already facing a serious health crisis. The novel coronavirus did not spare Europe either. Infection rates in Germany are rising daily. There is growing uncertainty among the population. The motto: Stay home and keep infection rates low. But as restrictions tighten, employees are growing increasingly worried about their jobs. Small businesses and the self-employed, in particular, fear for their livelihoods. So how can you keep working while staying at home as much as possible? That’s right! Working from home. Remote work is currently a widely used option. Anyone who can is working from home. Our daily routine at our offices in Düsseldorf and Oberhausen is also heavily impacted. In times of crisis, we must stick together and do everything we can to limit the economic damage. In this article, we would therefore like to explain what needs to be considered when working from home. The following information is relevant for both employees and employers and is also of interest outside of a crisis. Working from home doesn’t have to be just a stopgap solution!
Companies in Crisis: What Are the Responsibilities of a GmbH Managing Director?
As an entrepreneur, you strive to set your company up for long-term success. Unfortunately, external factors, unforeseen circumstances, or poor decisions can affect any business. A corporate crisis is not always avoidable. Currently, we can see how many companies are struggling with the consequences of the COVID-19 crisis. The corporate crisis itself is difficult to prevent, as we cannot influence its causes. It is important that, as a GmbH managing director, you respond appropriately to the unforeseen situation while taking legal aspects into account. With this article, we aim to offer guidance to companies in crisis. It is essential that the GmbH managing director understands their fundamental duties.
NRW Coronavirus Emergency Assistance Program
As you have likely already seen in the media, the federal and state governments intend to support small and medium-sized enterprises across all sectors of the economy, as well as self-employed individuals, freelancers, and entrepreneurs, during the COVID-19 crisis.
Essentially, the plan is to provide emergency aid in the form of a one-time, non-repayable grant.
The emergency aid is tiered according to the number of employees and totals the following amounts for three months:
