Speaking after a meeting of European Union finance ministers, Olaf Scholz said he and Germany's 16 federal states have agreed to allow companies to apply for a tax deferral by June 30 and to postpone any assessment of interest until Sept. 30.
The tax deferral program has been in place since the coronavirus crisis began one year ago. Scholz said its extension would help companies' cash situations and protect jobs.
Scholz also expressed confidence that countries working to change international tax rules for the digital economy will be able to agree to an approach by the middle of the year, saying chances are good that "what has been discussed for years can be realized in the summer."
Nearly 140 countries and territories are working through the Organization for Economic Cooperation and Development to revise the current system. The OECD's tax chief, Pascal Saint-Amans, recently said the organization was no longer seeking comments from stakeholders on the project, which includes both a reallocation of taxing rights among countries and a global minimum tax.
--Editing by Vincent Sherry.
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