For companies and employees
Lindner is getting this Corona help off the ground
2/3/2022, 6:31 p.m
Companies, employees and especially nursing staff should continue to benefit from tax breaks due to the pandemic if Federal Finance Minister Lindner has his way. The cabinet, Bundestag and Bundesrat still have to agree to it.
The home office flat rate is being extended, the care bonus remains tax-free and companies are better able to offset losses: These are the most important points of a new law that Finance Minister Christian Lindner has initiated. He quickly implements projects that the SPD, Greens and FDP have agreed in their coalition agreement. However, the approval of the cabinet, Bundestag and Bundesrat is still pending.
The planned law shows “that we will not leave people and companies alone with the consequences of Corona,” said Parliamentary State Secretary for Finance Katja Hessel. The fact that the home office flat rate is extended in the tax return brings direct relief for employees.
The same applies to the so-called loss offsetting for companies. “In this way we are setting the course for relief and better framework conditions for future investments.” By 2026, the state will take in 11 billion euros less.
The following is planned:
- Premium for nurses up to 3000 euros tax-free: There should be a corona bonus for nurses – the federal government wants to provide one billion euros for this. The law that has now been submitted regulates that these premiums remain tax-free up to an amount of EUR 3,000. As much of the money as possible should actually reach the employees. This applies to special payments, among other things, for employees in hospitals, in intensive care, for outpatient nursing staff and employees in nursing homes.
- Home office flat rate also for 2022: The tax home office flat rate temporarily introduced due to the Corona crisis will be extended by one year until the end of 2022. So if you work from home, you can still state the days in your tax return – regardless of whether you have an extra study or work from the living room or kitchen. You can set five euros per day in the home office, but a maximum of 600 euros per year. However, the sum achieved in this way is one of the income-related expenses, for which all taxpayers are charged a flat rate of 1000 euros anyway. Only those who spend more than 1000 euros here benefit from the special rule. It is not yet known how many employees actually benefit from the home office flat rate.
- Companies are better able to offset losses: Companies that are making losses due to the Corona crisis should become more liquid through tax aid. You get the opportunity to offset current losses to a greater extent than before against profits from the two previous years. This reduces advance payments, for example, and without the so-called loss carryback, you would only get back overpaid taxes later. The planned law will extend the extended loss statement until the end of 2023. For 2022 and 2023, the maximum amount will be raised to 10 million euros. Incentives for investments should also provide special rules for the tax depreciation of goods that are purchased or manufactured in 2022.
- Longer deadlines for tax advisors: Tax advisors will have an additional three months to file their clients’ tax returns for 2020. The deadline has already been extended once: Actually, the tax consultants should now submit the documents by the end of May at the latest. Because of the high workload in the pandemic, this is currently difficult, they argued. The tax consultants also apply for economic aid for companies and take care of short-time work benefits. In the current crisis, they are therefore increasingly reaching their limits. Now they should have time for their work until the end of August. The deadlines for tax returns for 2021 and 2022 will also be slightly extended.
Criticism from trade and industry
The Bundesrat has to agree – criticism of the plans came from Bavaria. Finance Minister Albert Füracker made it clear that the announced simplifications were not enough: “We need a further development to a flat rate for mobile work combined with an increase to 1000 euros per year.”
DIHK General Manager Martin Wansleben said that the equity base in many companies was getting thinner, which made it difficult to finance urgently needed investments. In addition, restricted business activities led to liquidity problems. It is therefore correct that the degressive depreciation for investments should be extended until the end of 2022, as should the extended loss carryback. “Both measures should be improved.”
The Federal Managing Director of the Federal Association of Small and Medium-Sized Businesses, Markus Jerger, said that Lindner was serious about easing the burden on companies and citizens. The planned law is a milestone on the way there. The President of the Association of Taxpayers, Reiner Holznagel, called for the home office flat rate to be extended now because mobile working will continue in the future. “Therefore, the lump sum should apply permanently and be adjusted to inflation.”