Deadline approaching for tax returns: Consequences of late filing
In Germany, filing a personal tax return late can result in several penalties and late fees imposed by the tax office. Here's a breakdown of the potential penalties and their implications:
1. Late Filing Penalty: The tax office may impose a late filing penalty equal to 0.25% of the assessed tax for each month of delay, with a minimum charge of 25 euros per started month of delay.
2. Interest on Back Taxes: In addition to the late filing penalty, interest on back taxes can be charged at a rate of 0.5% per month until the taxes are paid.
3. Penalty Payment: If a tax return is not submitted, the tax office can enforce submission by threatening a penalty payment according to Section 328 of the German Fiscal Code.
4. Tax Estimation: If no tax return is submitted, the tax office may estimate the tax basis and issue an assessment notice to determine the tax owed.
5. Late Filing Surcharge: If the tax return is submitted very late, the tax office is obliged to impose a late filing surcharge.
6. Late Payment Surcharge: The tax office can further impose a late payment surcharge on those who do not file or pay on time pursuant to Section 152 of the Fiscal Code.
It's important to note that these penalties can accumulate quickly and lead to significant financial burdens. To minimize these penalties, it's advisable to file as soon as possible after the deadline and, if applicable, apply for a reasonable cause or extension beforehand.
Valid reasons for missing the tax return deadline could include an accident with hospital treatment, death of a close relative, a longer stay abroad, missing documents, or a move. The amount of the late fee is regulated by law since 2019.
Garden work, insurance, and medicine can potentially be tax-deductible, making the tax return process easier. However, it's always recommended to seek professional advice to ensure accurate and timely filing.
The deadline for self-prepared tax returns is July 31st. Those who seek tax advice have until April 30th, 2026. If no self-neglect or valid reason is present, requesting a deadline extension from the tax office in writing is advised.
Submitting a tax return is not mandatory for all employees. However, it's crucial to understand the potential benefits of claiming tax allowances and the consequences of not filing on time. There is an upper limit of 25,000 euros in late fees that can be due.
The head of the German Tax Union (DSTG) has called for the abolition of tax returns for employees in their current form, suggesting a potential simplification of the process in the future.
[References omitted for brevity]
- Overlooking personal tax submission in Germany can lead to a late filing penalty equal to 0.25% of the assessed tax for each month of delay, with a minimum charge of 25 euros per started month, increasing financial pressure on individuals.
- To alleviate potential financial strain, individuals are advised to seek professional help for personal-finance matters related to personal tax filings, ensuring accurate and timely submissions to minimize penalties and late fees imposed by the tax office.
