The Corona crisis is still ongoing and many companies are struggling economically, especially in the gastronomy, hotel industry, travel or event industry. But companies can still benefit from financial and tax relief – if they take action quickly.
The turn of the year 2021/2022 has again brought numerous event cancellations. The travel industry has to accept losses and many companies in the gastronomy and hotel industry have also recorded a decline in sales. Companies in other industries are also suffering from the consequences of the pandemic in some cases. Liquidity is therefore becoming scarce in many places and existential fears are growing.
Bridging Assistance IV
However, there are some measures that can mitigate the economic consequences. And accounting plays an essential role in the implementation of these measures. For the period from 1.1.2022 to 31.3.2022, for example, Bridging Assistance IV can be applied for until 30.4.2022 . The necessary data for the application can be provided by the company’s accounting. Depending on the slump in sales, up to 90 percent of the eligible fixed costs can be reimbursed. In addition, an equity grant can be granted. The application for Bridging Assistance IV can be submitted by lawyers, tax consultants, auditors or sworn accountants.
Tax relief
The tax offices currently still grant generous tax relief in the form of deferrals, enforcement measures and the adjustment of advance payments in the simplified procedure. It can have a huge impact on a company’s financial situation if a tax payment does not have to be made immediately. However, applications must be submitted in due time so that the currently generous regulations can be applied. Some deadlines of 31.3.2022 are now very tight, for example for deferral applications. The Federal Ministry of Finance provides information in a letter.
Note: The tax measures for the victims of the flood disaster in the summer of 2021 have also been extended in NRW, Rhineland-Palatinate and Bavaria . Those affected must observe the short application deadlines and take action in good time.
Result
There are numerous options that companies can take advantage of to strengthen liquidity in a current crisis situation. In order for any applications to have a chance of success, the accounting department must be able to provide appropriate information. For companies with scarce liquidity reserves, it is therefore existentially important that the accounting department can react quickly and reliably prepare appropriate information.
ICS adminservice accompanies its customers through the times of the Corona pandemic in a spirit of partnership. You can rely on our service for efficient and reliable financial accounting and payroll and all the necessary support.
Image source: Pixabay, Photographer: dimitriwittmann
Author
Sylvia Meier
Guest Author
Sylvia Meier is a certified financial economist (FH) and has worked at the tax office, in consulting (Big Four firm), and for a specialized publisher. Today, as a freelance consultant, she supports companies and can demonstrate numerous publications, particularly on the topics of taxes, controlling, accounting, and finance.
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