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Nexia Ebner Stolz

Tax Advice

Corona crisis: reduction of advance tax payments

There is hardly a company that does not suffer from liquidity bottlenecks in the face of the corona crisis - the reduction of tax prepayments is intended to ease their burden.

Accor­ding to a let­ter from the Federal Mini­s­try of Finance (BMF) dated 19 March 2020, com­pa­nies can sub­mit app­li­ca­ti­ons for adjust­ment of advance pay­ments to income and cor­po­ra­tion tax. Proof must be pro­vi­ded that they are directly and not insig­ni­fi­cantly affec­ted by the corona cri­sis. Howe­ver, it is not necessary to prove the damage incur­red in detail.

On the other hand, if requ­ests for reduc­ti­ons of advance pay­ments are made which only con­cern periods after 31 Decem­ber 2020, spe­cial jus­ti­fi­ca­tion is requi­red. Tax­pay­ers affec­ted by the effects of the coro­na­vi­rus can also apply to their res­pon­si­ble tax office until 31 Decem­ber 2020 for a reduc­tion of the trade tax base value for the pur­po­ses of the advance pay­ments to which the muni­ci­pa­li­ties con­cer­ned are bound when deter­mi­ning the advance pay­ments of trade tax.

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