Examining the possibility of securing an extension for submitting the tax return?
Heads up, taxpayers with a 2023 tax return due soon are running out of time. It needs to typically be in the appropriate mailbox by September 2, 2023. Here's how to postpone the deadline a bit.
Things are getting tight. Though the tax return, like in earlier years, is expected to be submitted later to the tax authority, specifically by August 31, 2024, given it's a Saturday, the submission date shifts to September 2. Time is running out, leaving only a few days. Here are some clarifications on this topic.
Can the deadline be extended?
Indeed, through an extension of the deadline. However, it must be strongly justified, unlike before - either by phone, in writing, or directly via ELSTER. While requesting an extension, a realistic submission date, such as one or two months later, should be provided. The application should be made as soon as possible, preferably before the deadline, i.e., before September 2.
Does the new September 2, 2024 deadline apply to all tax returns?
No, a longer deadline applies if a tax advisor or a tax assistance association aids the process. In that case, the deadline is May 31, 2025. Since this is also a Saturday, the submission date shifts to June 2, 2025.
What penalties apply if the submission deadline is not met?
For every full month that the tax return is late, a 0.25% late payment surcharge is charged on the tax due. However, at least 25 euros are due. The surcharge can amount up to 25,000 euros. The penalty is automatically imposed if the declaration is not submitted within 14 months after the end of the respective tax year. Chronic latecomers may also face additional enforcement costs and interest.
How long do those who are not obligated to submit a tax return have to do so voluntarily for 2023?
For the year 2023, the deadline is December 31, 2027. Even for the year 2020, this can still be submitted to the tax authority by December 31, 2024. This might still be beneficial, as the average refund in recent years has been around 1,000 euros, according to the Federal Statistical Office.
Who has to submit a tax return anyway?
Who must file a tax return?
- Employees who manage at least two different jobs and have tax class 6
- Couples who have tax class 3 or 5
- Those who have more than 410 euros additional income per year; this could be income from renting and leasing or pensions
- Those who have been granted a tax allowance by the tax authority
- Self-employed, entrepreneurs, and farmers must generally file a tax return if their income exceeds the basic tax-free allowance of 10,908 euros (2023)
- Those who were in short-time work in the previous year
- Those who receive substitute income, such as unemployment, parental, sick pay, or maternity benefits
- Couples who divorced in 2022 and were previously jointly assessed are required to file. The same applies to divorced or separated spouses where one is obligated to pay maintenance
- Capital gains can also make filing a tax return mandatory. This is the case if due church tax on capital income was not paid, foreign income is present for which no withholding tax was paid, or too little withholding tax was paid in the previous year
- Pensioners if the income for 2023 exceeds the basic tax-free allowance of 10,908 euros (single). The amount is doubled for jointly assessed couples
Who does not have to file a tax return?
Persons who have no income or whose income is solely from an employment relationship without any other income.
For which taxes do declarations have to be submitted?
- For income tax - including declarations for separate and joint determination of tax bases for income tax assessment as well as for separate determination of remaining loss carryforward
- for corporate tax - including declarations for separate determination of tax bases related to corporate tax assessment as well as for the allocation of corporate tax
- for trade tax - including declarations for separate determination of carryforward-eligible trade loss and for separate determination of carryforward of grants as well as for the allocation of the tax rate
- for value-added tax as well as
- for separate or separate and joint determination according to paragraph 18 of the Foreign Tax Act
Despite the new September 2, 2024 deadline, some may still require an extension. In such cases, individuals must contact the Office of the Tax Inspector and provide a strong justification, suggesting a realistic submission date.
If a tax advisor or a tax assistance association is assisting with the tax return, the deadline for submission is extended to June 2, 2025. This is crucial information to consider when working with these professionals and avoiding penalties.
