The following measures are intended to generally prevent high unemployment and company insolvencies. The aid package consists of the following: In addition to the EUR 4 billion emergency aid package, which was rolled out to finance short-time work and to support SMEs in particular, a further EUR 9 billion in guarantees and liabilities are to be provided to secure loans. EUR 15 billion will be invested in emergency aid to support sectors that have been hit particularly hard by the crisis. Ten billion euros have also been set aside for deferred taxes.
Are you a sole trader or SME that currently has no revenue due to the COVID-19 crisis?
The hardship fund was endowed with two billion euros and serves as a quick first aid measure to lessen the acute financial plight of sole traders, SMEs and other self-employed persons whose revenues have plummeted due to the crisis. The money is a one-off subsidy and does not have to be repaid. In concrete terms, a subsidy of max. EUR 2,000 per month over a maximum of three months (up to a total of EUR 6,000) will help cushion the loss of earnings The first assessment period for the loss of earnings will be the first month of the COVID-19 crisis, from 16.3. to 15.4. All information, application forms and documents can be found here: Hardship fund: Safety net for self-employed persons
Do you want to defer tax payments or pay them off in installments?
Due to the economic plight, it is now possible to apply for a deferral, or payment of taxes by installments. In addition, it is possible to apply to have the interest charged for deferred payment reduced to zero. See the following link for more information, application forms and documents: Federal Ministry of Finance - Apply now for quick and unbureaucratic assistance.
Do you want reduced profit expectations due to coronavirus to be taken into account for tax purposes?
Taxpayers may apply for a reduced advance income tax or corporation tax payment until October 31, 2020 if the expected income for the respective year is lower. The application must include substantiation explaining the reduced profit expectation due to the changed economic situation. Click here for all information: Federal Ministry of Finance - Apply now for quick and unbureaucratic assistance.
Do you need guarantees for loans and bridging loans as a result of the COVID-19 crisis?
15 billion euros will be invested in emergency aid to support industries that have been particularly hard hit by the COVID-19 crisis. The funds will be used to help affected companies maintain their solvency and bridge liquidity problems caused by economic impacts of the COVID-19 crisis. Financial support is provided primarily in the form of guarantees for loans and bridging loans on preferential terms. In certain circumstances, direct subsidies to support liquidity are also possible. In particular, expenses for rents, labor costs, necessary operating resources, taxes and levies, insurance premiums and appropriate remuneration for entrepreneurs can be covered. Details and documents can be found here: Special terms and conditions: Bridging guarantee in connection with the “COVID-19 crisis”.
Do you want to temporarily put your employees on short-time work?
The new short-time work model serves to prevent dismissals for operational reasons and secure your employees’ jobs. To guarantee your liquidity and financial security, the state will pay all employer contributions from the 1st month onwards. You pay only for the work actually performed by the employees, the rest is topped up by the state up to 80-90% of the salary. The following requirements have to be met:
- Temporary economic difficulties in connection with COVID-19
- Loss of working hours: at least 10% and at most 90% of the normal working time laid down by law or collective agreement. During the period of short-time work, a loss of working time of up to 100% is possible. However, 90% lost working time may not be exceeded on average during the period of short-time work.
- COVID-19 agreement between employers and employees detailing the conditions of short-time work in particular: Scope, duration, maintenance of the level of employment, determination of the loss of working hours
Via the following link you will find all further information and documents to apply for short-time work: Covid-19 short-time-work.
Do you want to stay up to date or get general information?
The Ministry of Economic Affairs regularly updates all information and measures that you may need in the wake of the crisis. You can find all the information on this at the following link: Covid-19 overview.