In June, the tax authorities of the German states received extensive data on assets held by German taxpayers in Dubai.

By the end of 2025, the federal, state and local governments can expect additional tax revenues totaling around EUR 10 billion.

There is also more time for the tax return for 2020 if the return is prepared by the tax advisor.

A total of 22 measures are intended to free companies and private individuals from unnecessary bureaucratic requirements or at least facilitate their practical application.

Those affected by the economic consequences of the Corona pandemic can continue to apply for deferral and adjustment of advance payments under simplified conditions.

Despite a negative balance for the government from interest on back payments and refunds, policymakers continue to maintain an interest rate of 6 % per year on back payments and refunds.

The majority of the changes in the Annual Tax Act 2020 will take effect in 2021. But there are also some changes that will take effect retroactively or with a delay.

The biggest reform in the tax law on donations and non-profit organizations brings improvements for taxpayers and non-profit organizations almost across the board.

For legal and technical reasons, tax offices cannot start processing tax returns for 2020 until mid-March at the earliest.

The temporary enforcement protection from the relief provided to those affected by the Corona crisis also extends to pre-crisis tax liabilities, but does not include business tax.