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Online message - Tuesday, April 7th, 2020

Coronavirus | Tax and economic measures - Rhineland-Palatinate

With regard to their tax and economic measures, the federal states reacted largely uniformly to the corona crisis. However, there are some special features in every federal state. We have therefore sorted the measures for you by federal state; here for Rhineland-Palatinate.

Avoid direct debit with the advance VAT return

The Rhineland-Palatinate tax offices are currently not carrying out strict checks of the requirements for applications for deferral and postponement of enforcement for sales tax made as a result of the Corona crisis. However, prompt processing of the large number of applications - before the next due direct debit for sales tax - cannot be guaranteed in every case. In order to avoid debiting the account before a decision on the requested equity measure is made, the State Tax Office advises entrepreneurs and traders that in these cases, when submitting the advance VAT return, it is possible to select code number 26. In this way, a direct debit for sales tax that has already been granted can be prevented for this period. The originally issued SEPA direct debit mandate remains for pre-registrations for other periods of time (see State Tax Office Rhineland-Palatinate press release of March 31, 2020).

Reimbursement of special VAT prepayments

Affected companies can also have the special advance payment on sales tax for 2020 reduced to zero upon request. As a rule, you will get back any advance payments you have already made. This is an immediate liquidity aid. This will provide the Rhineland-Palatinate companies with an additional liquidity protection shield of up to 705 million euros (see State Office for Taxes Rhineland-Palatinate press release of March 25, 2020).

Deadline extensions

With immediate effect, the tax offices will request deadline extensions from members of the tax advisory professions for tax returns due to the corona crisis retrospectively from to. This regulation relates to the so-called annual tax returns such as the income tax return, the deadline for which has already expired on or is about to expire. Delay surcharges that have already been set will be waived on request in cases of retroactive extension of the deadline.

The Rhineland-Palatinate tax offices were also made aware of the economic impact of the Corona crisis last week and have generously used the discretion available when deciding on equity applications. The nationwide aid package that has now been adopted takes up the regulations already in place in Rhineland-Palatinate (see State Office for Taxes Rhineland-Palatinate press release of March 23, 2020).

Letter from the LfSt on tax measures to take into account the effects of the coronavirus

The State Tax Office has written to the Rhineland-Palatinate Chamber of Tax Advisors on the application of the uniform national tax measures to take into account the effects of the coronavirus (excerpt):

"I. Equity measures

The following regulations apply to all types of tax that are administered on behalf of the federal government (including income tax, corporation tax, sales tax) and apply to claims that are already due and those that are still due.

Requests for deferral, § 222 AO

Insofar as a taxpayer is demonstrably directly and not insignificantly affected, no stricter requirements need to be placed on the presentation of the prerequisites for a deferral. However, a general reference to the corona pandemic is generally not sufficient. The immediate connection and the financial impact must be plausibly presented, at least in outline. However, the extent of the financial losses does not have to be specified and proven.

The tax offices will generally refrain from sending questionnaires to determine the economic situation. In significant individual cases, however, evidence by means of a questionnaire may be required.

In the case of taxpayers who are active in sectors that are particularly hard hit (including tourism, gastronomy, retail), no special explanation is required. The direct concern is already given by the fact that the Corona crisis has led directly to financial losses for the taxpayer, as is the case, for example, with declines in sales due to a lack of orders.

The statutory regulations continue to apply to wage tax, which is why it is not to be deferred (§ 222 S. 4 AO); in this regard, however, the granting of a suspension of enforcement comes into consideration.

The deferrals can be pronounced until. The setting of deferred interest is waived (Section 234 (2) AO).

Only fixed tax claims can be the subject of the deferral. Therefore, new applications must be made for taxes that have yet to be determined, e.g. advance sales tax returns. A further justification can then be dispensed with.

Refusal of enforcement measures, § 258 AO

If the tax office becomes aware that a taxpayer is directly and not insignificantly affected, no further enforcement measures should be taken.

Existing measures that restrict the taxpayer's ability to act (e.g. attachment of an account) will be repealed. The direct and not insignificant impact must be presented in the same way as the requirements for the deferral. However, proof of the economic situation is not required.

However, I would like to point out that security measures (including compulsory security mortgage) remain possible in individual cases.

Decree, § 227 AO

Only those penalties for late payment during a suspension of enforcement are waived. These edicts will be pronounced successively after.

II. Advance Payments

In addition, the taxpayers concerned have up to and including the opportunity to submit applications for a reduction in advance payments on income and corporation tax for the 2020 assessment period, stating their circumstances.

It is also possible to adjust the advance payments already made for the 1st quarter of 2020 as well as the due and unredeemed advance payments within the meaning of Section 37 (4) EStG (in conjunction with Section 31 (1) KStG (“increased advance payments 2019”).

With regard to the applications for a reduction in the tax base for the purpose of trade tax prepayments for the collection period 2020, the same decrees of the highest tax authorities of the federal states have been issued. "

You can find the full letter here.

This regulation does not apply to wage tax registrations and sales tax advance registrations until further notice. In this respect, a clarification is still pending on the administrative side.

Form for applying for tax relief and requesting an extension of the deadline

Both applications can be found on the homepage of the Rhineland-Palatinate State Tax Office. As far as possible, the applications should be submitted electronically (PDF) to the tax office. However, the forms mentioned do not have to be used.

Access to tax offices and courts

Visiting traffic to the tax offices is currently restricted. All those who want to contact their tax offices are asked to only do so by telephone or in writing until further notice, so that direct personal contacts are reduced as comprehensively as possible.

Access to the courts should also be reduced to a minimum. Urgent procedures will continue to be carried out (see online message of March 18, 2020).

Help for companies

Grant program

The federal government is currently launching a grant program for self-employed people and small businesses with up to 10 employees. The state of Rhineland-Palatinate complements and expands this program with the "Future Fund Strong Economy Rhineland-Palatinate":

The future fund supplements the federal grants with cheap instant loans for companies with up to 10 employees and extends the emergency aid to companies with up to 30 employees. Applications for the federal grant can be submitted to the Invstitions- und Strukturbank Rheinland-Pfalz from next week. The immediate loan from the state can be applied for at a later date at the house bank.

The emergency aid from the federal and state governments provides for the following:

  • Self-employed and companies with up to 5 employees: up to 9,000 euros subsidy from the federal program; Up to 10,000 euros instant loan from the state if necessary. In total, the emergency aid amounts to up to 19,000 euros.

  • Companies with 6 to 10 employees: up to 15,000 euros subsidy from the federal program; Up to 10,000 euros instant loan from the state if required. In total, the emergency aid amounts to up to 25,000 euros.

  • Companies with 11 to 30 employees: Up to 30,000 euros instant loan from the state plus a state grant of 30 percent of the loan amount. In total, the emergency aid amounts to up to 39,000 euros.

The instant loans have a term of six years and are interest-free and redemption-free until the end of 2021.

Loans and guarantees

Affected companies can use the loan products and guarantees of the infrastructure bank and the Bürgschaftsbank Rheinland-Pfalz to cope with the economic consequences of the coronavirus. The first point of contact for companies are the house banks, who take on the application to the ISB and the guarantee bank.

The country supports companies with Guarantees with 80 percent guarantees. Guarantees up to an amount of 2.5 million euros are issued by the Bürgschaftsbank (info (at), hotline 06131 62915-65). The ISB is responsible for the assumption of guarantees for 2.5 million euros.

The company's liquidity needs can also be covered by program loans and, in the case of ongoing financing, by suspension of repayments. The ISB advises companies by phone at 06131 / 6172-1333 or by email at [email protected]

You can find more information about emergency aid here.


You can find our entire coverage of the Corona crisis here (activated for all customers).

This message will be updated continuously, last on.

Source: Rhineland-Palatinate online (ImA)

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