Taxpayers of Germany, rejoice: for some of you, the annual tax return will contain another form this year. Here’s an overview of who the change affects and which figures taxpayers need to have to hand. 

New corona-aid form for 2020 tax return in Germany

Throughout the coronavirus crisis, the German state has spent a lot of money on supporting the economy. A big chunk of this was the corona aid programme (Corona-Hilfe), a financial assistance package which was distributed to freelancers, self-employed workers and small businesses in the form of corona emergency aid and bridging aid. 

This assistance has provided some much-needed support, but it is also resulting in some additional bureaucracy - even after it has been applied for and received. That’s because tax authorities in Germany have released a new form for the 2020 tax return, known as the corona-aid additional form (Anlage Corona-Hilfen). 

All freelancers, self-employed workers and tradespeople must fill out the form

If you’re a waged employee in Germany, you can breathe a sigh of relief: the new form doesn’t affect you. Instead, it’s for freelancers, self-employed workers, tradespeople, farmers and foresters. If that’s you, you must submit this form, whether or not you received financial assistance. 

Mercifully, the form is only a single page (you can take a look at it here), but it’s important that you fill it out. In line 4, it asks whether you have received emergency state aid, bridging aid or comparable grants in connection with the coronavirus pandemic. The balance of state aid received and repaid in 2020 must be entered for each of your companies in lines 5 to 10, separately for you and your spouse (if applicable). 

State aid counts towards your taxable income

These grants do not have to be repaid, but they do count towards one’s gross income and profits for the year, and are therefore subject to income tax. So, the total balance of the grants you received must be included as a taxable income in the profit or loss calculations you make on your G (business owners), S (self-employed workers), or L (farmers and foresters) form. 

If you have not received any state aid, you can simply fill in line 4 (1 = Yes; 2 = No). 

For more advice on filling out your tax return in 2020, especially if your situation is more complicated, it might be helpful to consult with a tax advisor.