Germany allows new tax breaks to cushion Covid impact on economy

The German government has adopted a tax relief package to help citizens and businesses cope with the impact of the Covid-19 pandemic.

Individuals and businesses are still bearing a heavy burden due to the pandemic, the government has said.

Besides social cohesion, the aim of the measures is to “protect the health of citizens while preserving jobs and supporting the economy”, Xinhua news agency reported, citing the government.

Employees in Germany will now be able to claim a tax allowance of up to 600 euros ($630) per year for working from home.

Although companies are no longer obliged to allow employees to work from home, almost 25% were still working remotely in April, according to the Munich-based ifo institute.

Healthcare employers can now also pay their nursing professionals a tax-free bonus of up to €3,000.

This allowance is intended to “reward the special efforts of healthcare personnel during the pandemic”, the government said.

Other measures include allowing companies to carry losses forward two years, to ensure liquidity.



(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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