Government measures in key jurisdictions 3rd edition final - Flipbook - Page 57
Germany
Litigation
•
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.
Are the courts
operating?
•
Currently, court hearings are often postponed due to the corona crisis. With the
consent of both parties, the court may switch to written procedure inappropriate
proceedings. Alternatively, if the necessary technical equipment is available, hearings
may also be permitted via video conference without the consent of theparties.
•
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.
•
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
Company
law matters
•
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 thispossibility.
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 currentcrisis:
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
Tax
Has any new
legislation been
introduced in light of
Covid-19?
Government measures in key jurisdictions
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