Government measures in key jurisdictions 2nd edition final pages - Flipbook - Page 45
Germany
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Litigation
•
Are the courts
operating?
In general, the courts are operating normally. Despite of social distancing and travel
bans, court deadlines must be met and court hearings have to be attended.
•
Currently, court hearings are often postponed due to the corona crisis. With the
consent of both parties, the court may switch to written procedure in appropriate
proceedings. Alternatively, if the necessary technical equipment is available, hearings
may also be permitted via video conference without the consent of the parties.
•
Dispute resolution before state courts and arbitral tribunals in times of the COVID-19
pandemic
•
The German Federal Ministry of Finance and the supreme tax authorities of the federal
states have issued decrees containing new guidance in light of the corona crisis.
Tax
Has any new
•
legislation been
introduced in light
of COVID-19?
Company
law matters
The tax authorities are instructed to make straightforward and quick adjustments of
assessed tax advances upon request (trade tax, corporate income tax, income tax
and VAT).
•
Upon application and to the extent that tax payments cannot be made due to the
effects of the COVID-19 pandemic, tax payments due are generally supposed to
be deferred without interest until 31 December 2020. There are no tax deferrals for
withholding taxes, in particular wage tax and capital gains tax.
•
The tax authorities have been instructed to suspend the enforcement of overdue tax
debts (corporate income tax and income tax) until 31 December 2020. Late payment
surcharges incurred as a matter of law shall be waived.
•
VAT on restaurant meals and other food in the catering industry will be reduced from
19% to 7% starting from 1 July for a limited period until 30 June 2021.
•
SMEs may offset expected losses against advance tax payments already made for 2019.
•
Measures under German tax law to create or preserve liquidity
•
For stock corporations, the German government has passed legislation that allows Annual
General Meetings (AGMs) to be held electronically in 2020. Numerous small and large
stock corporations are already using this possibility.
Have any measures •
been put in place
to accommodate
social distancing
(such as remote
general meetings)?
•
•
There are two options for this: Either a physical meeting can be held with the option of
shareholders attending electronically and casting their votes electronically or by letter.
Alternatively, a completely virtual AGM can be convened without any shareholders being
present. For more information, see our article ‘Special provisions for the current crisis:
emergency legislation for general meetings 2020’.
For limited liability companies, the German government has introduced legislation to
facilitate the adoption of shareholder resolutions by way of circular resolution. Online
shareholders’ meetings continue to be possible only if all shareholders agree.
Facilitations for circular resolutions in the GMBH by the COVID Mitigation Act –
overview and open questions
Government measures in key jurisdictions
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