BERLIN – The German government has approved a draft of the fourth Covid-19 tax relief act, which would combine economic and social measures to mitigate the pandemic's impact.

Employees in the healthcare sector could be awarded a tax-free bonus of up to 3,000 euros (USD 3,400) to reward "special efforts of care workers during the pandemic," according to reports. Special tax rules on working from home would continue to apply, allowing taxpayers to claim five euros for each calendar day they work exclusively at home, up to a maximum of 600 euros, according to the government.

According to the plan, German companies could credit their Covid-19-related losses against profits from past years in order to safeguard their liquidity. Operating losses of up to ten million euros in 2022 and 2023 could be carried back two years.

"We are reaching out to the wide centre of society with today's decrees," Minister of Finance Christian Lindner said in a statement on Wednesday. "The law is a valuable contribution to our country's recovery."

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