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COVID-19 GERMANY
Tax exemptions on extra bonus for Corona-workers In this particular times of Corona-crisis now heavily affecting daily life and creating exceptional working conditions notably for public services, health services, suppliers, food retailers or transport facilities, German gouvernment and authorities have conluded several tax exemptions, allowances and reliefs. They are open and applicable to all employers wanting to honour important service contributions of their employees, and granting extra money for that.
free from income tax and social charges. Sole condition is not to include it in the regular payroll but to give it on top. The programme is planned to be maintained until the end of the year having been started in march 2020. Alexander Hradecky Auren Germany Alexander.Hradecky@muc-auren.de www.auren.com
Therefore, if bonuses are related to Corona, payable as additional salary or non-cash benefits, employees can take advantage up to 1500 EUR from fully exemption, leading to a payroll
Legal measures: Insolvencies, late payment, deferrals and others - For businesses and consumers On 25.03.2020, the German Bundestag adopted the following legal measures with regard to the effects of the corona pandemic on entrepreneurs and consumers. Here you will find an overview of the measures: For entrepreneurs: Measures in insolvency law Obligation to file for insolvency is suspended The obligations to file for insolvency for companies and their managing directors in
the event of coronavirus-related insolvency reasons, like bankruptcy, are suspended until 30 September 2020. However, this does not apply if the inability to pay is due to reasons other than the Corona crisis or is hopeless. But it is assumed for the benefit of all companies that were not insolvent on 31.12.2019 that the current insolvency is a result of the Corona crisis and is not hopeless.