COVID-19: combat liquidity shortages with immediate loss carryback

The exceptional situation resulting from the COVID-19 threat in Germany, Europe and many other countries places companies and self-employed persons in severe difficulties and threatens numerous jobs. The biggest problem companies and self-employed face is the lack of liquidity caused by the decline in sales, while payment obligations (e.g. salaries, rent) continue. Consequently, voices have been raised for short-term financial assistance in cases of liquidity shortages for companies and the self-employed. Our tax experts have analyzed possible tax measures to accommodate increased liquidity and conclude that immediate loss carryback is an important measure to provide affected companies with short-term liquidity.
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