Letters from the tax office (Finanzamt) · 7.4

Prepayments too high: can I have them reduced?

Short answer

Yes. If it is foreseeable that your company will make less profit than assumed, you apply to the Finanzamt (tax office) for a reduction. Supported by current figures as evidence, this is generally processed quickly.

Key points

The application is submitted to the Finanzamt, either informally or via ELSTER.
Attach current figures: profit to date and a realistic projection for the year.
For Gewerbesteuer (trade tax), the Finanzamt adjusts the base amount (Messbetrag). The municipality then changes the prepayments accordingly.
Prepayments can also be adjusted upwards. This can prevent a large back payment.
Unrealistically low estimates will be noticed at the latest with the annual return, resulting in back payments and potentially interest.

Legal basis

§ 31 KStG§ 37 Abs. 3 EStG§ 19 Abs. 3 GewStG

Continue

Next video: Payment Reminders and Late-Payment Surcharges: What to Do?
Related: What are tax prepayments (Steuervorauszahlungen)?

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