Crafts disappointed by the third relief law

The Federal Cabinet has passed the third Bureaucracy Reduction Act. The skilled trades industry is critical of the bill, saying it's "too fragmented." The federal government lacks the will to shape things and the courage to reduce bureaucracy.

"Unfortunately, the bill is not the expected solution." Holger Schwannecke means that third bureaucracy reduction law (BEG III), on which the Federal Cabinet has now agreed. "With the draft law presented the federal government is losing some credibility in reducing bureaucracy.

The proposals are disappointingly fragmented and will not, in the foreseeable future, provide the necessary relief for craft businesses," says the Secretary General of the Central Association of German CraftsWith the new law, the Federal Government wants to almost 1,2 billion euros relieve.

The yellow slip is being abolished! More about electronic sick noteThe draft law lists 14 individual measures that are intended to provide the greatest relief three measuresn provide:

The Introduction of electronic notification of incapacity for work At the beginning of 2021, the economy should EUR 549,4 million relieve. 

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Given the increasing digitalization, it is no longer appropriate for employees to submit their sick notes to their employers in paper form, the draft states. "In the future, after receiving notification of incapacity for work from the employee, employers will electronically request data on the start and duration of the incapacity for work, as well as the date on which continued payment of wages will end, from the health insurance companies."

Reduction of the deadline to five years

Facilitation of Provision of data processing systems for tax purposes are intended to reduce the bureaucratic burden on businesses. In the future, it should be sufficient for the taxpayer five years after a system change or data outsourcing from the productive system, a data carrier with the stored tax documents is kept.

"In addition to easing the burden on companies, this also creates incentives for tax authorities to conduct audits promptly," the federal government writes in its draft. It also aims to ease the burden on businesses by offering the option of a digital registration form in the accommodation industry.

Many tax reliefs

Here you can find the draft bill of the Federal Ministry for Economic Affairs and EnergyIn addition to these central measures of the BEG III, the Federal Government envisages tax following changes before:

• Raising the small business VAT limit from 17.500 euros to 22.000 euros in previous year’s turnover,
  temporary abolition of the obligation to submit monthly VAT returns for new founders,
• Raising the flat-rate wage tax limit from 62 euros to 100 euros for contributions to group accident insurance,
• Raising the maximum tax-free amount for workplace health promotion from 500 euros to 600 euros,
• Raising the wage limits for flat-rate wage tax for short-term employment,
• Flat-rate wage tax for employees with limited tax liability.

Further measures is the

• Elimination of the obligation to register for accident insurance for entrepreneurs who have registered a business,
• credentials for Introduction of text form instead of written form for the notification of an employer’s decision regarding a request for part-time employment in accordance with the Part-Time and Fixed-Term Employment Act,
• is Reduction of bureaucracy for certification and information obligations of pension plan providers towards the taxpayer
• and the electronic transmission obligation in providing information on circumstances relevant for taxation.

ZDH criticizes lack of creative will and courage

ZDH Secretary General Holger Schwannecke calls for a rethink and appropriate action by legislators and administrators when it comes to reducing bureaucracy. Photo: © ZDH / Schuerring

The draft law is symptomatic of the lack of creative will and courage the federal government in reducing bureaucracy, explains Schwannecke. "Instead of benefiting craft businesses from a hardly manageable number of documentation and information obligations To exempt companies from these restrictions, companies are faced with administrative practices that are almost incomprehensible. We finally need a rethink and appropriate action from legislators and administrators." The Bundestag is called upon to make comprehensive improvements to the parliamentary process. There are plenty of proposals.