Measures to mitigate COVID-19
economic losses

COVID-19 not only changes everyday life, but also leads to great uncertainty in the economy. Numerous new offers of help have been launched by the German government with the aim of protecting companies and employees, providing stability and minimizing risks. On these pages, we have collected the most important changes in the law and put them together in a clear and concise manner in order to help you steer your company safely through the crisis in the current situation.


  • Application possible retroactively to March 1st.
  • Allowed in case of absence from work by >10% (previously 30%) of the workforce with more than 10% of the salary
  • Full refund of social security contributions
  • Also applies to temporary employment agencies
  • Abstention from building up negative working time accounts
  • Term up to 12 months


  • Application for interest-free deferral of mature and maturing taxes until end of 2020
  • Applications for adjustment of advance payments (income tax / corporate tax / VAT)
  • Refund of advance payments is possible
  • Suspension of late payment penalties / enforcement measures until the end of 2020


  • Conditional suspension of the obligation to file for insolvency until September 30, 2020, if the insolvency maturity is based on the consequences of the COVID 19 pandemic and there are prospects of eliminating the insolvency
    • Insolvency maturity is due to the spread of the COVID-19 virus and
    • prospect of eliminating an existing insolvency if no insolvency had occurred by December 31, 2019
  • Extensive suspension of liability and rescission rules as well as criminal law treatment


  • Risk assumption by KfW of up to 90% of the loan volume
  • Application for and granting of loans via intermediary financing partners ("house banks")
  • Up to 800 TEUR with 100% assumption of the credit default risk


  • Liquidity assistance from the Bundesländer for companies and the self-employed (including emergency aid, guarantees, bridging loans, mezzanine)


  • Temporary right to refuse performance in the context of continuing obligations (for consumers and micro-entrepreneurs**)
  • Temporary deferral within the framework of consumer loan agreements
  • Restriction of the possibility of termination of a rental and lease agreement by the landlord
  • Holding of general meetings and shareholders' meetings by means of electronic communication
  • Measures for holding staff council elections in order to ensure that staff councils as well as works councils have the basic capacity to act and make decisions (implementation planned)

*) Act on the mitigation of the consequences of the COVID-19 pandemic in civil, insolvency and criminal proceedings of March 27, 2020, Federal Law Gazette Part 1 No. 14, 569 ff.
**) Entrepreneur ≤10 employees and turnover or balance sheet total ≤ 2 MEUR

Important Measures from EU Member States

We have gathered a few sources with valuable information about all the EU measures affecting directly or indirectly the companies, taken at Member States and EU level.

PLUTA as a strong partner –
in business and legal terms

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Management GmbH

Assistance with all kinds of applications

  • Checking of all relevant evidence of compliance with the conditions
  • Short- and medium-term liquidity planning
  • Integrated corporate planning (long-term), in particular with focus on:
    • Determining the influences of COVID-19
    • Identification of the necessary financing requirements before/after COVID-19
    • Scenario calculations depending on the duration of the crisis
  • Identification of additional collateralisation potential

Operational crisis management and implementation of restructuring measures

  • Operational liquidity management:
    • Working Capital Management
    • Debtors management / negotiations with suppliers
    • If necessary, ongoing reporting on the use of the loan
  • Identification and implementation of accompanying restructuring measures
  • Realization of short and medium-term cost reduction potentials
  • Raising liquidity reserves
  • Communication and negotiation with financing partners
  • Ensuring the ability to deliver

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Rechtsanwalts GmbH

Insolvency law advice

  • Examination of reasons for insolvency and prognosis of continued existence
  • Support for insolvency filing
  • Performance of self-administration procedures (in particular protective shielding procedures)
  • Analysis of the effects of insolvency on creditors and creditor groups
  • Analysis of liability claims against managing directors and shareholders
  • Consulting on insolvency appeal

Insolvency administration

  • Support of insolvency proceedings as insolvency administrator
  • Accompaniment of insolvency proceedings as administrator

To mitigate COVID-19-related economic damage, further extensive measures by companies are necessary.

PLUTA supports