At the end of 2019, reports of infections with the then unknown virus COVID-19 (Corona virus) increased in a Chinese province. What initially began as a localized outbreak developed within a few months into a global pandemic that has since slowed down entire economies. In order to delay the spread of the virus, German politicians reacted with contact and exit restrictions, event bans and business closings (so-called lockdown). This lockdown has been in effect in Germany in various forms for almost a year and has led to a significant slump in demand and supply. At this point in time, it is impossible to predict how often and to what extent the lockdown will be extended, nor how long it will take the economy to recover from the consequences.
To mitigate the consequences of the crisis, the German federal government has already launched several aid programs, some of which are also based on the tax system.
Against the background of the current crisis situation, this study is intended in particular to evaluate the expansion of tax loss offset rules, the introduction of an immediate write-off of selected assets and other income tax measures that can expand the current immediate action tax program and also set investment incentives for German companies. The analysis is carried out both qualitatively and quantitatively as part of a tax burden comparison using the established European Tax Analyzer model.