"Implement the reform of the tax loss carryback in a timely manner"
The Federal Minister of Finance announces to reform the tax loss carryback. The VDMA supports this plan because it would provide the companies with urgently needed liquidity.
Dr. Ralph Wiechers, member of the VDMA Executive Board, comments on the announcement made by Federal Finance Minister Olaf Scholz on ZDF to reform the tax loss carryback:
"The VDMA expressly welcomes the will of the Federal Minister of Finance to implement a reform of the tax loss carryback in a timely manner.
"With this instrument, the companies will also quickly regain liquidity which is urgently needed to overcome the consequences of the crisis".
The loss carryback, i.e. the offsetting of current losses against already taxed profits of previous years, not only leads to a performance-related taxation across periods. This instrument also enables companies to quickly regain liquidity, which is urgently needed to overcome the consequences of the crisis.