Increased tax burdens for corporations: The Ministry of Economic Affairs has announced a tax hike for businesses.
German Government Expands Financial Aid to Struggling Businesses
In a bid to help businesses affected by the ongoing COVID-19 pandemic, the German government has expanded its financial aid programme, Bridging Aid III. According to Federal Minister of Economics, Peter Altmaier (CDU), this support is designed to provide quick assistance to those in dire need.
As of Friday, over 26,760 applications had been submitted for Bridging Aid III, with the total amount of advance payments made exceeding 387.6 million euros. The maximum advance payment under this programme is 800,000 euros, a significant increase from the previous limit of 400,000 euros.
This increased aid is intended to provide immediate liquidity to businesses severely affected by the pandemic and lockdown. According to Altmaier, companies can receive state support of up to 1.5 million euros per month until June 30, 2021, under Bridging Aid III. It's important to note that this support does not have to be repaid.
To be eligible for these advance payments, businesses must be small and medium-sized enterprises (SMEs), self-employed persons, or freelancers that have experienced significant revenue loss due to COVID-19 restrictions. They must demonstrate a minimum revenue loss of 30% in a relevant reference period, compared to the same month in 2019.
The aid covers fixed costs such as rent, leases, energy, insurance, and financing costs that continue to burden the business despite lower revenues. To access the advance payment, applicants are required to submit documentation including financial records, proof of revenue loss, and other relevant information through an authorized tax consultant, auditor, or lawyer.
It's worth noting that the exact conditions could vary depending on the business sector, the duration and extent of pandemic-related restrictions, and the specific deadlines for application phases. For the most accurate and current information on the Bridging Aid III program's advance payment eligibility and application requirements, consulting the official German Federal Ministry for Economic Affairs and Climate Action (BMWK) website or authorized tax/audit professionals is recommended.
This programme, which has been in effect since February 10, 2021, is part of the German government's efforts to support businesses struggling due to the pandemic. A photo of a closed shop due to the corona crisis underscores the need for such aid.
Altmaier's statement was made to the "Rheinische Post" (Saturday edition). As the pandemic continues to impact businesses across Germany, the expanded Bridging Aid III programme offers a glimmer of hope for those struggling to stay afloat.
The expanded economic and social policy, Bridging Aid III, focuses on providing finance to businesses and self-employed individuals struggling due to the pandemic, offering immediate liquidity. This financial aid, which does not require repayment, covers fixed costs like rent, leases, energy, insurance, and financing costs.
