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The tax office can charge a late payment surcharge

The official deadline for submitting the 2023 tax return was August 31, 2024. At least for everyone who is required to submit a tax return. Since the deadline is a Saturday, the tax return did not have to be submitted to the tax office until the following Monday, also on September 2. Anyone who has not managed to do this should hurry up now. Because the tax office can now demand an insurance surcharge. And the more time passes, the more expensive it can become.

The late payment surcharge amounts to 0.25 percent of the assessed income tax, but at least 25 euros per month of delay. A maximum of 25,000 euros in shipping costs can be due. Example: An employee is likely to have to pay 500 euros in back taxes and has submitted his tax return three months late. The possible late payment surcharge – 0.25 percent of 500 euros – is only 1.25 euros. However, since it amounts to at least 25 euros per month, the employee must pay 75 euros more, i.e. a total of 575 euros including the back tax payment.

Postponement may still be possible

Whether a late payment surcharge is imposed is at the discretion of the tax office. Such a surcharge must only be imposed if the tax return has not been received 14 months after the end of the calendar year in question. Exception: In the case of a tax refund, a tax assessment of zero euros or a retroactive extension of the deadline, the tax office can still waive the late payment surcharge.

If you have missed the deadline, it may be worth contacting the tax office as soon as possible and explaining the reasons. This may help you avoid a late payment surcharge. If you have good reasons for the delay, the tax office may grant you a little more time. But you should definitely not let this deadline pass.

When coercive fines and substitute detention are threatened

Under certain circumstances, the tax office can resort to more significant measures than the late payment surcharge. Anyone who lets deadlines pass and does not respond to further requests can be threatened with a penalty. This is possible, for example, if the tax office is asked to submit a tax return, provide information or submit documents within a certain period of time. The penalty depends on the individual case and can amount to up to 25,000 euros.

The increase in the penalty fine is substitute detention. This can be ordered if a taxpayer allows all deadlines and further requests to pass and the tax office considers the imposed penalty fine to be uncollectible. The tax office must apply for substitute detention at the responsible district court. In the worst case, this results in an arrest warrant, but the tax office must give the person concerned another chance to pay the penalty fine afterwards. If nothing happens then, the tax office can apply for arrest at the district court. Substitute detention lasts at least one day and at most two weeks.

By the way: Anyone who is required to file a tax return and hires professionals such as tax consultants or a tax assistance association to do so generally has more time. The 2023 tax return, for example, does not have to be submitted until June 2, 2025.

Source: United Wage Tax Assistance Association – VLH (ots)