Government measures in key jurisdictions 5th edition - Flipbook - Page 56
Germany
•
The German government had passed legislation that excludes terminations of tenancy
agreements in the event of late payment of rent for the period from 1 April 2020 to 30
June 2020 if the failure to pay was due to the effects of the Covid-19 pandemic. The
correlation between the failure to pay and the Covid-19 pandemic was not assumed
but had to be shown credibly by the tenant. As of 1 July 2020, this legislation expired
and is not applicable anymore. The German government did not make use of the
possibility to extend the relevant period until 30 September 2020.
•
The exclusion of termination ends on 30 June 2022, i.e. by this date the rent in arrears
(including default interest) must be paid to avoid a termination. Other termination rights
remain unaffected, i.e. the ordinary termination right for unlimited rental contracts as
well as the extraordinary termination. For more information, please see here.
•
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. This is seen in
practice more and more often.
•
Dispute resolution before state courts and arbitral tribunals in times of the Covid19 pandemic
Tax
•
Has any new
legislation been
introduced in light
of Covid-19?
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). On 22 April 2020, it was decided that, with immediate effect, small and mediumsized enterprises can apply to their competent tax office for a refund of amounts paid for
2019, in addition to advance payments already made for 2020, on the basis of a flat-rate
loss for the current year. Until 31 December 2021, taxpayers may submit applications for
adjustment of advance payments for 2021 income tax and corporate income tax, setting
out their circumstances.
•
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. Companies could submit the application to their
tax office until 31 December 2020. For 2021, further relief will be granted in principle with
an application by 31 March 2021, and deferrals until 30 June 2021, as well as further
extensions for follow-up deferrals. Deferral interest is not charged.
Property
Have any changes
been made to
the laws around
property, rent and
enforcement?
Litigation
Are the courts
operating?
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Government measures in key jurisdictions
