Information letter "End of the interest-free deferral options according to the BMF letters of 19.03.2020 and 18.03.2021".

Reason for the information letter:

In order to mitigate the effects of the Corona pandemic on the economy and to provide companies with liquidity, the Federal Ministry of Finance, in agreement with the supreme tax authorities of the federal states, issued so-called catastrophe decrees (BMF letters dated 19.03.2020 and 18.03.2021) on tax measures to take account of the effects of the Corona virus.

Accordingly, taxes could be deferred interest-free under simplified conditions. For this, the taxpayers had to be demonstrably and not insignificantly affected by the effects of the Corona crisis. The tax offices did not have to meet strict requirements when verifying the conditions for these deferrals.

Under these simplified conditions, deferrals could be applied for for the last time until 30 June 2021 for taxes due by then and granted without interest until 30 September 2021 at the latest. Thereafter, existing tax arrears may continue to be deferred under certain circumstances, but interest will then accrue at a rate of 0.5% per month (section 234(1), section 238 of the Tax Code).

The taxable persons should be made aware of this circumstance with the information letter.