"Measures to carry back losses can only be a first step"
The adjustment of the tax loss carry-forward gives companies some breathing space, but only provides limited help to medium-sized mechanical engineering companies.
The grand coalition has agreed on an adjustment of the tax loss carry-forward. Dr. Ralph Wiechers, member of the VDMA Executive Board, explains: "
liquidity is the greatest concern for our companies in Corona times. With this decision, the Grand Coalition is giving the companies some breathing space, even though the losses of many of them this year will probably be higher than the very manageable flat-rate loss that may be deducted from past profits".
"Maintaining liquidity is the biggest concern for our companies in Corona times."
"We expressly acknowledge that politicians have reacted quickly, pragmatically and unconventionally to support small businesses. However, the measure in this form will only provide limited help to medium-sized industrial companies in the mechanical and plant engineering sector. A significant expansion of the tax-returnable loss is therefore required. In the past economically very good years, the legislator has participated amply in corporate profits thanks to lavishly flowing income taxes and has even been able to achieve budget surpluses. It is therefore only fair that the state should now show solidarity with all losers by remitting foreseeable overpaid taxes.