Update: Germany’s legislative response to COVID-19

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 May 21, 2020  Blueback Global

Update: Germany’s legislative response to COVID-19

The German government has implemented many legislative changes, grants, incentives, and extensions in response to the impact on business due to the coronavirus. The following are the current benefits offered.

Emergency Aid Programme

Small enterprises with up to 10 employees, including sole proprietors and freelancers, can apply for grants, regardless of industry.

Those with a maximum of five employees or full-time equivalents can receive payments of up to €9,000 for three months. Those with a maximum of 10 employees or full-time equivalents can receive €15,000 over three months.

Submit applications through the relevant authority for your federal state.

Short-Time Work Scheme (Kurzarbeit)

Businesses can register for the scheme retroactive to March 1, 2020 if 10 percent of their employees face income reductions of more than 10 percent due to the impact of the virus. This allows companies to send workers home or significantly reduce their hours, without layoffs.

The subsidy provides 60 percent of after-tax wages (67 percent for employees with children) for up to 12 months. The government will also refund social security contributions.

Short-Time Work Scheme (Kurzarbeit)

Economic Stabilization Fund Loans

KfW and its financing partners are issuing unlimited loans with government risk assumption guarantees of up to 90% of the credit volume until December 31, 2021. Companies can apply through their banking institution.

These loans include expanded versions of the KfW Entrepreneur Loan and ERP Founder Loan for start-ups and emerging companies.

Tax Deferrals

Companies may defer income, corporate, and sales tax until December 31, 2020 without interest or late payment surcharges providing they can show hardship as a direct result of the virus. Taxpayers must submit an application to the appropriate tax office for approval.

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While this information is correct at the date of publishing, we recommend you contact us for assistance. We are here to help you navigate these new various legislative changes, grants, and incentives and the impact they may have on your business.

Contact Blueback Global Today!