The German government has launched amendments to fiscal law that are designed to mitigate the consequences of the pandemic for individuals and companies. The goal is still to stabilise economic trends, save jobs and support families.

These are the actions translated into practice by the third Corona-Steuerhilfegesetz (COVID-19 Fiscal Assistance Act):

• Parents will receive a one-off child bonus payment of 150 euros for each child eligible for child benefit in 2021. Like last year’s child bonus, it will not be deducted from social welfare benefits and is intended to benefit low- and middle-income families in particular. All in all, some 18 million children in Germany will benefit from the child bonus. 
• The rate of value added tax on food eaten in restaurants and other catering establishments is to remain at 7 per cent, reduced from 19 per cent. This is intended to help the hospitality sector when it is able to re-open and mitigate the economic consequences of pandemic-related restrictions. This will apply for a limited period until 31 December 2022.
• To ensure liquidity, it is to be made easier for companies to offset their pandemic-related losses against profits from previous years. For 2020 and 2021 this option will be expanded and raised to 10 million euros, or 20 million euros in cases of joint assessment for tax purposes.