Government relief measures for the second lock down

New regulations in the second lockdown

On 28.10.2020, the Federal Government met together with the state governments in another Corona summit. The aim was to take uniform measures for Germany due to the worsening situation. Chancellor Angela Merkel announced the measures adopted at a subsequent press conference. From November 2, there will be another lockdown across Germany. This includes slightly different regulations than in spring.

An overview of the rules:

• Schools and daycare centers remain open, as far as possible and subject to hygiene requirements
• Wholesalers and retailers can remain open subject to hygiene requirements
• Religious services are also allowed subject to hygiene requirements
• Catering establishments, bars, clubs and pubs must close, only a pick-up and delivery service is allowed
• Prohibition of entertainment and leisure events
• Cinemas, theaters, operas, amusement parks, arcades and the like will also remain closed
• Amateur and recreational sports are prohibited
• Professional sport is only allowed without spectators
• Gyms and swimming pools must close
• Hotels and other accommodation may only accommodate guests on urgently needed trips; tourist overnight stays are prohibited
• In general, there is a contact restriction of a maximum of two households in public and private spaces

The measures are valid until the end of November for the time being and are uniform across Germany.

Financial aid from the state

Who gets them?

In order to support companies even during this time, the state is planning an aid package of 10 billion euros. All companies and self-employed people who have to close or cannot continue their business as a result of the lockdown will be financially compensated. This also applies to companies that are indirectly affected by the closures. For example, a laundry for hotel laundry, which is theoretically likely to remain open, will hardly have any work in the next few weeks. Restaurants that continue to offer a delivery and collection service, i.e. also generate their own turnover, are also entitled to the help. The revenue you generate is then simply deducted.

What does the help look like?

For the first time, the government decided to pay revenue compensation. Companies with up to 50 employees and solo self-employed persons are reimbursed 75% of their normal turnover. The calculation is based on the previous year's monthly turnover, i.e. the turnover achieved in November 2019. For larger companies, the percentage of compensation depends on the respective rate under European law. This may vary in individual cases, but in principle, these companies are also entitled to compensation. Payments already made, such as bridging aid, are deducted from the revenue allowance. The financial aid also applies to companies that were founded after November 2019. They use the turnover of October 2020 as the basis for calculation.

Where can I apply for aid?

The application should be submitted via the page www.ueberbrueckungshilfe-unternehmen.de take place. This means that an existing infrastructure that has already proven effective is used. It was stressed that the aid should be provided without major bureaucracy and audit. In the next few days, there will be more detailed information on how applications can be submitted.

However, the Bavarian State Ministry has already warned against fraudulent emails asking you to open a PDF file with the alleged request. Never respond to such messages or open any links or files. The application will only be possible online, via the official website of the Federal Ministry of Energy and Economics, and only via your tax advisor or auditor or a similar certified body.