Financial aid for businesses affected by the coronavirus pandemic
Governments of most affected countries have rapidly announced various measures to help businesses in managing the coronavirus emergency and securing employment. On this page we keep you updated about the measures announces in Germany.
Loans and subsidies at favourable conditions
KFW
These (repayable) loans are offered on a federal level by the KfW (Germany’s development bank) and are intended for companies, self-employed and private individuals. Find a summary of the available programs here and here.
Further details can be found on the website of KfW and on the website of the Ministry of Economic Affairs and Energy.
IBB
Berlin’s local investment and development bank also announces programmes to help businesses overcome the current crisis. The IBB offers both repayable loan schemes at a 0% interest rate and, in partnership with the central government, non-repayable subsidies for companies and self-employed individuals.
Applications can be filed starting from Friday, March 27th, 12:00 via the IBB’s website.
Suspension of payments and enforcement
On March 25th, 2020 the German parliament passed an act that introduces several temporary amendments to legislation in order to mitigate the epidemics’ impact. Other changes have been brought about by decisions of the Ministry of Finance.
In particular (but without limitation):
companies that become insolvent because of the crisis are exempted from filing for bankruptcy
for companies and individuals affected by the corona crisis tax payments originally due until the end of the year may be postponed until Dec. 31st, 2020 without incurring interests on arrears or penalties
at the same time, enforcement against tax debtors is suspended until Dec. 31st, 2020
VAT filing and payment deadlines are being extended
Further information to be found on the Ministry of Finance’s website and, in particular regarding local taxes, such as the trade tax (Gewerbesteuer) on the website of each local tax authority (Finanzamt).