Government measures in key jurisdictions 5th edition - Flipbook - Page 57
Germany
Company
law matters
•
Have any measures •
been put in place
to accommodate
social distancing
(such as remote
general meetings)?
•
The tax authorities have been instructed to suspend the enforcement of overdue tax debts
(corporate income tax and income tax). Enforcement and late payment penalties for taxes
due by 31 March 2021 will be waived until 30 June 2021 if the debtor of a due tax payment
is directly and not insignificantly affected by the impact of the Corona pandemic. This
relates to income tax, corporate income tax and sales tax. 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 is reduced from 19% to 7%
since 1 July 2020 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.
For stock corporations, the German government has passed legislation that allows
Annual General Meetings (AGMs) to be held electronically in 2020 and 2021. Numerous
small and large stock corporations are already using thispossibility.
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 articles "Special provisions for the
current crisis: emergency legislation for general meetings 2020“ and “The extension
of the COVID-19 regulations for virtual shareholders/general meetings until the end of
2021 is certain”.
•
For limited liability companies, the German government has introduced legislation to
facilitate the adoption of shareholder resolutions by way of circular resolution. In
deviation from the previous position, the possibility is created for the limited liability
company to enable a resolution to be adopted in writing even without the consent of
all shareholders. 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
57
