The Limited Times

Now you can see non-English news...

Corona: The cabinet decided on these tax breaks

2022-02-16T18:07:30.470Z


FDP Minister Lindner wants to relieve “the broad middle of society”: The federal government is extending a number of financial aids to absorb particular hardships in the pandemic.


Enlarge image

...but not anytime soon: A symbolic image for the biggest desk fun of the year

Photo: Hans-Jürgen Wiedl/ DPA

Due to the ongoing burdens caused by the corona pandemic, the federal cabinet has launched further tax breaks for companies and citizens.

This should "contribute to stabilizing the economic recovery", said Federal Finance Minister Christian Lindner (FDP).

One wants to reach "the broad middle of society".

With the draft for the fourth Corona Tax Assistance Act passed by the cabinet, contributions would also be made to “appreciate the special achievements of carers,” Lindner continued.

The finance minister emphasized that the tax exemption of a care bonus of 3,000 euros was “expressly” provided for in the law.

The next step is for the Bundestag to approve the bill.

In detail, it provides:

  • The

    extension

    of the existing regulation on the

    home office flat rate

    until December 31, 2022.

    With the home office flat rate, five euros per day can be deducted if employees or the self-employed work at home.

    The upper limit per year is 600 euros.

  • Employers should also be able to pay tax-free allowances of up to EUR

    3,000 to employees in nursing professions

    .

    This maintenance bonus must be paid out by December 31, 2022.

    It is not included in the basic security for jobseekers.

  • The

    deadline for tax advisors to

    submit tax returns

    for 2020 will be extended by a further three months, the Ministry of Finance said.

    “As a result, the return deadlines for 2021 and 2022 will also be extended,” explained Lindner’s ministry – also for taxpayers without a consultant.

  • In addition, subsidies for short

    -time work benefits remain

    tax-free for a further six months, i.e. until the end of June 2022.

  • The extended

    offsetting of losses should also apply longer,

    namely until the end of 2023. In this way, companies should continue to be able to better offset their corona-related losses against profits from previous years.

    Operating losses in 2022 and 2023 can be carried back to the two immediately preceding years up to an amount of ten million euros and offset against profits of this amount.

  • Improved depreciation options for operational investments

    are also to apply for 2022

    .

    This should motivate companies to invest now and not to postpone purchases.

    The aim is to achieve "that, to a certain extent, we invest ourselves out of the recession caused by the pandemic," said Lindner.

Criticism of the federal government came from the ranks of the opposition.

The financial policy spokeswoman for the Union faction, Antje Tillmann, complained that the government draft should have come earlier and should have contained more extensive measures.

"Due to the strong inflation, we have to relieve citizens and companies quickly," she explained.

Criticism: Bonus not only for nurses

The responsible rapporteur for the Union faction, Fritz Güntzler, criticized that the tax-free payment of a Corona care bonus was not enough.

"Educators in emergency operations, employees in the health department who track contacts or tax consultants with Corona aid applications have surpassed themselves during the Corona crisis and deserve recognition from the federal government," he explained.

In addition, the home office flat rate should not only be extended by one year, but should be granted permanently.

The left-wing faction's financial policy spokesman, Christian Görke, called for relief for low earners and the middle class to be overdue in view of rising inflation.

"Of the 2.6 billion euros in relief, companies account for around 1.6 billion euros," he criticized.

mamk/AFP

Source: spiegel

All business articles on 2022-02-16

You may like

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.