Fiscal Measures to Counteract the Economic Consequences Of the COVID-19 Pandemic in Germany
Authors: Maximilian von Jähnichen
This article outlines and analyzes the different fiscal measures which have been realized in Germany in order to counteract the economic damages caused by the coronavirus pandemic and its subsequent lockdowns. Tools of direct as well as of indirect taxation will be explained in detail, but also procedural tax law and international tax aspects will be taken into consideration. Since domestic and international taxation are part of the global economy, the measures taken by the German Government will be regarded even from an economic perspective. In this case, this article also shows other non-fiscal tools that have to be mentioned in order to understand the rationale behind the federal supports. Furthermore, a critical point of view on the different approaches will be laid down for being able to evaluate the decisions of the Government. It will also be explained why the current and apparently relatively low unemployment rate could raise soon.
Keywords: Coronavirus, COVID-19, Financial stimulus, Federal support, Corporate taxation, Income taxation, VAT, direct taxation, Indirect taxation, Double tax convention, OECD, Germany, Finance, Lockdown