Germany will extend tax deferral for companies affected by the pandemic

Germany will extend the tax deferral to help companies affected by the new coronavirus pandemic for another three months. German Finance Minister Olaf Scholz said this on Tuesday. As the minister said, the central government and representatives of 16 federal states have agreed to extend the program launched by the government last year during the worst period of the first wave of the pandemic. The tax-deferral program was originally in place until the end of June and is now being extended until the end of September. "This is good news for companies," Scholz said, adding that the measure will improve corporate liquidity and protect jobs. However, the latest decision seems to require an additional budget for this year. Indeed, the € 180 billion debt envisaged in this year's budget is unlikely to be enough for the third wave of the pandemic. Scholz is expected to present a draft budget for 2022 for next week, and possibly an additional budget for this year.