Government measures in key jurisdictions 4th edition - Flipbook - Page 54
Germany
Litigation
Are the courts
operating?
Tax
Has any new
legislation been
introduced in light of
Covid-19?
•
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
•
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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.
The regular German VAT rate was cut from 19% to 16% for the period starting from 1 July 2020 until 31
December 2020. The reduced VAT rate was cut from 7% to 5%.for the same period.
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 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
54