![]() The vehicle is the mutual agreement procedure under the treaty, and the fee is a lump sum EUR 30,000 for each new agreement. Advance pricing agreements (APAs)Ī taxpayer can request the Central Tax Office to negotiate an APA on related-party transactions with a foreign tax authority on one's behalf. The fee varies between EUR 266 and EUR 120,721 depending upon the amount of tax involved (no fee is charged if the tax amount is less than EUR 10,000). Tax offices are able to issue binding rulings in respect of planned transactions, provided the taxpayer can show a particular interest in the tax consequences of the intended action. Nevertheless, the 0.5% interest rate remains applicable for interest periods until 31 December 2018. In the light of the enduring low-interest period, the German Constitutional Court declared the interest rate of 0.5 % per month to be unconstitutional from 2014 onwards. For the tax years 2020 through 2024, the interest period has been delayed by two to six months due to extended filing deadlines for tax returns as a result of the COVID 19 pandemic.įor periods from 1 January 2019 onwards, an interest rate of 0.15% per month (1.8% per year) applies, according to recent legislative changes. In principle the interest period begins 15 months after the year-end for which taxes are levied. Failure to pay by the due date followed by a three-day period of grace leads to a penalty of 1% per month.Ĭorporation and trade tax assessments bear interest on the net amount payable after deduction of all credits and previous payments. For trade tax, the due dates are the 15th day of February, May, August, and November. The corporation tax instalments are due on the tenth day of March, June, September, and December. Usually, this is the total tax due shown by the last assessment issued, as adjusted by any rate changes. ![]() The quarterly instalments are based on the estimated ultimate liability. Taxes are payable in quarterly instalments during the year, with a final settlement when the assessment is issued. Please note that, under the special procedures for foreign taxable persons, certain VAT related reports and applications, such as the EC Sales List and VAT refund applications, must be submitted electronically as well. There is also an electronic filing requirement for the financial statements supporting the return. The same applies to the annual returns for corporation tax, trade tax, and VAT. Monthly or quarterly returns for WHT from employee salaries, dividends, interest, royalties, and other payments, and for VAT must be submitted electronically. ![]() ![]() known late-filers and those with a record of other irregularities), one can be asked to submit their returns before these extension dates, though not before 31 July.įor tax years 2019 to 2024, the deadlines for filing tax returns has been extended due to the COVID-19 pandemic. However, for tax returns prepared by a professional tax adviser, the deadline is extended to the last day of February of the subsequent year. ![]() Returns are, in principle, due by 31 July of the following year. Assessments are issued once the tax office has reviewed the return. Returns are filed for each calendar year and reflect the financial statements for the business year ending in that calendar year. The tax year in Germany is the calendar year. ![]()
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