Final Settlement for Corona Aid: A Guide for Businesses

1 Introduction

From 2020 to 2022, the federal government implemented various measures to mitigate the economic impact of the Corona pandemic. In particular, the financial bridging aids for affected sectors such as retail, gastronomy, and the cultural economy played a central role. The settlement of these aids is now due and requires a careful review of the grants received. As an auditing third party, your tax advisory firm is at your side.

2 Funding Programs for Final Settlement

Two packages of federal funding programs are available for the final settlement:

- Package 1: Bridging Aid I to III or November and December Aid

- Package 2: Bridging Aid III Plus and IV

The submission deadline for the final settlement has been extended several times due to the increased number of applications and now ends on 30.09.2024.

3 Overview of Funding Programs

The various bridging aids and other funding programs had specific requirements and durations. From Bridging Aid I to the November and December Aid, companies were supported in different ways. The exact settlement is now based on actual sales figures.

4 Required Documents for Final Settlement

For the submission of the final settlement, your tax advisory firm requires the following documents:

- List of actual sales and funding-relevant costs with due date

- Complete profit and loss statement (P&L) for applications over one million euros

- Receipts for depreciation of seasonal goods and perishable goods

- Evidence of economic impact due to Corona protection measures

4.1 Eligible Fixed Costs

Eligible fixed costs include a variety of expenses such as rents, interest expenses, personnel expenses, and costs for hygiene measures. When submitting the documents, it is important to correctly distinguish between ongoing and one-time costs.

4.2 Special Features for Balance Sheet Preparers

For companies that determine their profit through a comparison of business assets, specific regulations apply. It is important to consider the payment terms of invoices and possible simplification rules to ensure correct settlement.

5 After the Final Settlement

After reviewing the documents, companies receive a final approval notice, which can lead to an additional payment, a refund, or a zero notice. In case of discrepancies, there is the possibility to file an objection within one month, which has a suspensive effect.

Conclusion

Proper and timely settlement of the received Corona aid is crucial for companies to avoid additional payments or refunds. Your tax advisory firm is at your side with expertise and support to effectively manage the final settlement.

For further questions and information, we are at your disposal.

Legal status: May 2025