The Federal Government has now reached an agreement, the Federal Council has also given its consent. The most important changes for you:
1. Sales tax cut
In the last few weeks, a temporary reduction in the sales tax rate for the catering industry has been discussed, but now the following should happen:
Reduction of the standard tax rate from 19% to 16%
>Reduction of the reduced tax rate from 7% to 5%
>limited in time from 07/01/2020 to 12/31/2020
Our rating
Knitted with a hot needle and not thought out. The whole thing is supposed to cost 20 billion euros, brings in particular conversion processes (and two of them) for all possible software providers and of course their corporate customers. By the time the ghost is implemented, the year will be over.
From our point of view, a sensible change that makes the grass roots vibrate would be, for example, to permanently raise the small business limit to 60,000 euros or more. That would often help start-ups massively – and successful entrepreneurs exceed this amount anyway, so the sales tax revenue would be adequately secured by sustainably strengthening the SMEs. Other EU countries show that it is possible.
2. Increase in the relief amount for single parents
This is to be increased from 1,908 to 4,000 euros. This makes sense, because the financial burden for single parents is often very high. Initially, this change is limited to 2020 and 2021.
3. The package includes other useful changes.
There are regulations to cap social contributions (which can secure jobs), a one-time child bonus of 300 euros for poor people, support for expanding the capacity of daycare centers and all-day schools, degressive depreciation for 2020 and 2021 and much more.
We are particularly excited about the pending new regulation of short-time work benefits. In the course of the Corona crisis, the social security contributions were also taken over for the first time, the KuG in its current form has become a very effective instrument to prevent dismissals and bankruptcies.
