Wage tax returns and contribution deferral: Help in the Corona Crisis
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Wage tax returns and contribution deferral: Help in the Corona Crisis

The State of NRW has already initiated a number of measures to secure the liquidity of companies affected by the Corona crisis. Now the state’s tax authorities have announced a new measure: NRW grants an extension of the deadline for wage tax payment. In addition, contributions to the artists‘ social security fund can be deferred. NRW and artists‘ social security fund help companies in the Corona crisis. We present the measures and give you an assessment.

Securing liquidity in times of crisis is extremely important for companies. For entrepreneurs, the wage tax return for March 2020 or the first quarter of 2020 would normally be submitted on 10 April. However, companies affected by the corona crisis are now being given some breathing space.

NRW grants deadline for wage tax returns

The state grants a two-month extension of the deadline for wage tax payment Accordingly, this must be done by 10 June.

This provides 3 billion euros in additional short-term liquidity to companies of the state during the crisis.

Application for an extension of the deadline for the wage tax return

Due to the original deadline, applications must be processed quickly. The tax authorities provide a relatively informal application form for this purpose. In it, the applicant only has to briefly state why the Corona crisis has made an extension of the deadline necessary for the company.

A feedback of the tax authorities is only given in case of rejection. This further accelerates the process.

Artists‘ social security fund (Künstlersozialkasse) offers deferrals and instalments

The Artists‘ Social Security Fund also offers relief to companies and insured persons, which are published on the website. There are three options for respective companies:

  1. Extension of the reporting deadline for chargeable remuneration payments 2019
    • Here companies can apply for an extension of the statutory submission deadline until 30 June 2020. An informal written application by e-mail is sufficient.
  2. Payment reliefs:
    • Companies can submit an informal request for deferral or payment by instalments by e-mail.
  3. Reduction of the monthly advance payment
    • If it is foreseeable that the chargeable remuneration payments in the current year will be lower than in the previous year due to the Corona crisis, companies can apply for a reduction in the monthly advance payments. Companies can submit the application by e-mail, telephone or as an informal letter. When doing so, they should state the expected amount and a brief justification.

Further extensions of the deadline by the state are possible upon request

In addition, the state offers companies further time extensions.

For example, payment deadline extensions can be applied for in the case of real estate transfer tax and interest-free deferrals can be applied for in the case of inheritance and gift tax and real estate transfer tax.

Our assessment

NRW and the artists‘ social security fund help companies in the Corona crisis. The new regulations further relieve the companies. It remains to be seen whether other federal states will extend the deadlines for wage tax. NRW is a pioneer in this respect.

In this way, the artists‘ social insurance fund, like many professional associations, is making a contribution to reduce the liquidity problems in the Corona crisis.

We assume that applications will be processed quickly and without complications. Remember to have the deadline for submitting your tax return extended before 10 April.

We will be happy to support you with these measures. Contact us.

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