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Berlin, March 19th

  • New developments in Neustarthilfe

If you have recorded a high loss of due to the corona, you have low fixed costs and have fewer than 5 employees, the Neustarthilfe is a good possibility. Applications are now possible for partnerships and for one-person corporations. These applications must be made through tax advisors.

In the apply of the Neustarhilfe the amount of your employment-inocome can be added, if your commercial sales are more than 51 %.

If the loss of your sales fails, the restart help (pro rata) has to be repaid later on. It is therefore also to be understood as a liquidity advance.

Since March 12th it is made clear that the application for the Neustarhilfe can be submitted either by yourself or through a tax advisor.

If you need the assistance of a tax advisor, costs fall and are only paid proportionally together with the Neustarthilfe.

Berlin, February 19th 21

Application for the Neustarthilfe is now possible

Restart assistance (Neustarhilfe, 50 % of the in comings in the reference-periode, maximum 7500,00 €) is available since few days.

The following condition of responsibility:

You have less than 5 employees

They have more than 51% of their income from self-government

You hardly have any fixed costs

Your sales in the funding period until June 2021 will be less than 60% compared to the reference period in 2019 or, if you look back, until April 30, 2020 compared to the months before the crisis with the given rights.

When the re-start assistance is billed, more and more of the permanent work from our dependent work becomes your independent turnover, which is 51%. If the ad loss notice fails, the restart help (proportionately) is to be paid. It is therefore also to be understood as a liquidity advance in the event of a positive business development of the soloist. If the turnover is 90% or more, the entire subsidy must be given, from 40% heard sales belong to a proportional repayment.

The subsidy does not count towards the Grundsicherung.

The application can be submitted until August 31, 2021.

The link is: direktfrage.ueberbrueckungshilfe-unternehmen.de

Berlin, 10.09.2020

The question of whether the grants should be repaid has been asked frequently. It is to be expected that random checks will increasingly take place. What this review will look like is not yet clear.

The Association of Tax Advisors was able to clarify with the IBB that with the "Corona-Immediate Aid I", the € 5,000 grant from Berlin state funds, in addition to ongoing operational material and financial expenses, personnel costs, costs of private life and health insurance costs could be paid, cf. IBB FAQ catalog.

In particular about the "costs of private living", questions arose as to whether these can be set at a lump sum, in (un) limited amounts or the like. According to the Chamber of Tax Advisors, an oral statement by the IBB has shown that it is for Berlin there are no restrictions and no specifications on the "cost of private living".

For Berlin, the following applies: for small businesses with up to 5 employees, the observation period for the use of the Berlin "Corona-Immediate Aid I" is 3 months from the application, and for solo self-employed even 6 months. If living costs of There are at least € 5,000 (e.g. rent, food, electricity, telephone, etc., additional health insurance costs), this is sufficient as "use".

In the case of solo self-employed persons in particular, it is likely that the € 5,000 Berlin Corona Emergency Aid I does not have to be repaid relatively often. According to the information given by the IBB by telephone, an appropriateness test (e.g. "expensive apartment") is not important; rather, the actual costs count.

In the case of random samples, large blocks of the private cost of living (rent, energy, telephone) can be documented using evidence of accounts. Food and drink costs can be estimated if necessary.

However, it is important that the basic requirements for the application were met, including a corona-related liquidity bottleneck. The IBB has sent each applicant a list of the requirements. The question of whether a part-time job is also favored is not unequivocally clear. In the application form and in the IBB circular with the request for repayment, it is not listed as a requirement that it must be a main occupation. After notification from the Association of Tax Advisors, IBB has now pointed out that a main occupation was a requirement.

I recommend that you check whether a repayment should be made. Especially for the federal grant, the amount of the grant should be checked again with regard to the fixed costs.

Berlin, 13.07.2020

The long-announced program "Soforthilfepaket VI" has now been activated and can be applied for. The content of the program is as follows:

The funding period covers the months of June - August 2020. As with emergency aid, the bridging aid does not require that liquid funds first be used up. The months April and May 2020 and 2019 are compared. For companies that were founded after June 2019, the months December 19 - February 20 are to be used as the reference period. The maximum reimbursement amounts for companies with up to five employees are € 9,000.00, with up to ten employees € 15,000.00. The maximum reimbursement amounts can be exceeded in justified individual cases. This would be the case if the fixed costs were at least twice as high as the maximum reimbursement amount.

A forecast is to be made for the months of June, July and August.

The grant will have the height of:

  • 80% of fixed costs are subsidized if the drop in sales in April and May is 70% compared to the previous year,
  • 50% with a drop in sales of 50 - 70% and
  • 40% with a drop in sales between 40% and less than 50%

In the case of bridging assistance, unlike in the emergency aid program, personnel expenses that are not covered by short-time work allowance are deductible at a flat rate of 10% of the remaining fixed costs.

The application can only be made by a registered tax advisor, auditor or lawyer. I will therefore register. A tax consultant fee is incurred for the extensive work, which is included in the bridging aid and reimbursed.

Unfortunately, registration is time-consuming, but applications can be made in time.

In addition, the economic stimulus package, the Corona Tax Assistance Act, was adopted at the end of June and punctually on 1.7. announced, so that you can also expect extensive tax relief here:

The sales tax reduction for half a year is known, in addition there is again the degressive depreciation, tax benefits when buying a company electric vehicle and the possibility of early loss offsetting at 2019, increase in the relief amount for single parents and the child bonus.

Berlin, 06.04.2020

The IBB program will be technically changed, from April 6th 2020 it will again be possible to submit applications via the IBB portal. The program is currently paused. Some of you have not yet applied for emergency aid. If you are concerned, it is advisable to make this application. If your position is on hold, the position remains. If you have already submitted an application for Corona grants, you cannot apply for another grant.

The federal and state governments have made further simplifications at the weekend. Emergency aid (up to 9,000.00 - up to 5 employees - or up to 15,000.00 -10 employees), agreed:

The application deadline for the emergency aid will be extended until the end of May 2020 and

Getting help according to SGB II is no longer a reason for exclusion from receiving immediate help.

Important is:

Emergency aid is not a loan and therefore does not have to be repaid.

For applicants (self-employed, freelancers and small businesses with up to 10 employees):

You must run a domestic operation

registered with a German tax office and

to be permanently active on the market.

The activity must be carried out in the main occupation.

The specific liquidity aid is based on the credibly insured liquidity bottleneck for the application period (3 months). If the landlord has reduced the commercial rent by at least 20%, the subsidy that may not have been exhausted can also be used for two additional months (i.e. for a total of 5 months ).

The applicant must assure that the Corona measures made emergency aid necessary in March 2020 and that the income is not sufficient to pay the short-term obligations arising from operating and financial expenses (e.g. commercial rent, lease, leasing expenses). As of December 31, 2019, the applicant companies must not have been in financial difficulties.

The emergency aid is implemented by the federal states, LBB is responsible for Berlin and ILB for Brandenburg.

The emergency aid program deliberately foregoes a demanding and bureaucratic application process. However, the information must be correct. Incorrect information leads to corresponding consequences.

To ensure that the subsidy benefits companies in full, it is not taken into account in the tax prepayments for 2020.

The subsidy is taxable, but will only have an effect once the tax return has been submitted in 2020, i.e. in 2021.

Berlin, 27.03.2020

IBB Grant: Application is today, March 27th possible:

The subsidy from the State of Berlin (€ 5000.00) is granted on top! You can apply for both grants. It is important:

  • Subsidy for self-employed persons (federal government) up to 9,000.00 or up to 15,000.00 depending on the number of employees (up to a maximum of 10 employees in the company)

It is necessary to specify what, for example rent and other ongoing costs such as leasing payments, for example: financing investments, servicing other loans to build capacity

  • Emergency aid package II for companies with up to 5 employees, subsidy max. 5000.00: the application form comprises 4 pages, one reason must be stated on one page. “Corona” is not enough, for example, the reason would be: no more revenue, slump in sales

According to the current status, the grants are unfortunately subject to income tax. You must be recorded as tax-free income in your 2020 income tax return.

There is currently no support package for landlords. However, it is under discussion and a demand to support this group of people affected.

For companies in other federal states, the application must be made via other portals. Applications were possible here a few days ago.

Berlin, 25.03.2020

The government and administration come up with new regulations and impulses every day to deal with the corona crisis:

After the federal government has decided on the aid package for the solo self-employed, the Bundestag decides today, the Federal Council is expected to approve on Friday.

It is likely that it is necessary to prepare and submit a liquidity plan to apply to IBB. In the appendix you will find a tool with which you can already prepare it.

Important link for the application:

The online channels are overloaded. It is recommended that applications be made early in the morning or late in the evening.

Berlin, 23.03.2020

A decision on a support package is expected in the next few days for small businesses.

The grants are expected to flow as early as April. Funded are companies whose existence is threatened and which are experiencing a liquidity shortage.

The following amount is planned:

  • for companies with up to 5 employees: one-off payment of € 9,000.00
  • for companies with up to 10 employees: one-off payment of € 15,000.00

It is also planned that partial amounts may be made available as loans. Whether subsidy or loan will be checked after the current status.

A total of 3 million has been earmarked for this support, so applications should be made as soon as possible.

In addition, KfW's lending has improved. KfW now has to cover 90% of the risk, up to now it was 80%.

Banks are requested not to cancel loans in the event of corona-related liquidity shortages. Some banks have already responded and offer self-employed and freelancers the possibility to suspend the repayment of current corporate loans for up to 6 months.

Deferral and adjustment requests also create liquidity.

Berlin, 19.03.2020

Short-time work benefit 2020

Basically, the goal of short-time work is that employees temporarily work fewer hours in order not to be given notice. This can be the case, for example, if deliveries are missing due to the corona virus and the working time has to be reduced as a result, or if state protective measures ensure that the company is temporarily closed. This benefit must be requested by the employer.

The application can be completed online. On the side of the Federal Employment Agency. https://www.arbeitsagentur.de/atei/antrag-kug107_ba015344.pdf 

Compensation claim based on the order of quarantine

Entitlement to compensation according to the Infection Protection Act exists for both practice owners and employees, provided that the practice is prohibited for reasons of infection protection law (Section 56 Infection Protection Act).

Prerequisite for compensation claims is the prohibition of employment or the ordering of quarantine for reasons of infection protection law. The level of compensation for self-employed people depends on their loss of earnings. In addition to the loss of earnings, the self-employed can also be compensated for operating expenses "to a reasonable extent" (Section 56 (4) Infection Protection Act). Practice owners must also apply for this.

Compensation for salaried employees also includes wage payments during the quarantine measure.

There is an incapacity to work as soon as a practice employee who was previously symptom-free falls ill during the quarantine. Then the compensation claims (e.g. entitlement to continued payment) pass to the federal state. In the event of incapacity to work, an AU certificate is required despite the quarantine.

If workers are quarantined but show no symptoms, the employer must first pay the compensation. If necessary, however, it can be reimbursed by the responsible authorities.

ATTENTION:

The claims under the Infection Protection Act are subsidiary to all other claims for financial replacement, i.e. supportive. This should definitely be taken into account when applying! So other claims must first be made.

Help for solo self-employed

Help is also offered for the self-employed. According to Section 56 of the Infection Protection Act, they too can apply to the competent authority for "adequate replacement of the uncovered operating expenses that continue during this period". The prerequisite is that the company or practice is at rest during an ordered quarantine.

Planning:

A liquidity aid from 19.3. is being planned. A non-repayable grant in the amount of € 5.000,00 - € 30.000,00 should be applied for as an immediate package for small businesses

Contact Person:

Support packages IBB Tel 030 21254747

Berlin partner 030 46302440

State continues to pay wages

There are proposals for a temporary basic income.

Berlin, 17.03.2020

Measures to strengthen those affected are published daily and almost every hour. Here is the information taken from the daily press:

  • You no longer need to register in person to apply for unemployment benefit and basic security. The application for basic security can be thrown in by throwing it into the house mailbox; telephone applications should be possible.
  • It is possible to reduce your health insurance contributions and contributions to the German pension insurance; an application is required for this. My support for you: I would be happy to create a certificate of the expected reduced income.
  • The application for short-time work allowance is possible: the employee receives 60% from the employment office, the employer can increase up to 100%. It could be calculated here whether the short-time work supplement would be a more favorable result than the exemption under continued payment of wages.
  • Many medium-sized and large companies face bankruptcy because the going concern principle could no longer be confirmed as of the balance sheet date on December 31, 2019. Here, the federal government has suspended the deadline for applications until the end of September. Until then, the economic situation can normalize again. Let's hope the best!
  • The German Orchestra Foundation has set up a fundraising campaign for freelance professional musicians - donation account at: www.orchestersiftung.de
  • Applications for bridging loans can be submitted to KfW Bank.

Berlin, 16.03.2020

The economically drastic measures taken by the corona virus caught us cold.

During this time, the tax office is also accommodating and understanding. Therefore the following is agreed as "tax liquidity aid for companies":

  • The granting of deferrals is made easier. If the confiscation would be a severe hardship, the tax revenue offices can defer taxes. The tax authorities are instructed not to impose any strict requirements. This supports the taxpayers' liquidity by postponing the timing of the tax payment.
  • Prepayments can be adjusted more easily.As soon as it becomes clear that taxpayers' income is likely to be lower in the current year, tax prepayments are reduced quickly and easily. This improves the liquidity situation. Here, too, I can make an application for you.
  • Enforcement measures (e.g. attachment of accounts) or late payments are waived until December 31, 2020, as long as the debtor of a tax payment due is directly affected by the effects of the Corona virus.

you can find general information about the new SARS CoV 2 coronavirus. Here you will find answers to frequently asked questions and hygiene tips.

Here are contact details for important contacts:

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