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German Ministry of Finance Confirms Third Law Providing Additional Tax Aid Measures for COVID-19 — Orbitax Tax News & Alerts

On 17 March 2021, the German Ministry of Finance issued a release confirming the third law for the implementation of tax aid measures to cope with the COVID-19 crisis (the so-called "Third Corona Tax Aid Act"). As previously reported, this includes the extension of the reduced 7% VAT rate for restaurants and catering services to 31 December 2022 (with the exception of serving beverages), and the expansion of loss carryback relief to both 2020 and 2021 with the maximum carryback increased to EUR 10 million or 20 million in the case of a joint assessment. In addition, the law provides for the granting of a child bonus of EUR 150 for every child entitled to child benefit in 2021.