{"id":10932,"date":"2019-07-09T10:41:49","date_gmt":"2019-07-09T08:41:49","guid":{"rendered":"https:\/\/tunal-stb.de\/provisional-assessment-of-tax-interest\/"},"modified":"2023-07-21T09:36:14","modified_gmt":"2023-07-21T07:36:14","slug":"provisional-assessment-of-tax-interest","status":"publish","type":"post","link":"https:\/\/tunal-stb.de\/en\/provisional-assessment-of-tax-interest\/","title":{"rendered":"Provisional assessment of tax interest"},"content":{"rendered":"
[vc_single_image image=”5499″ img_size=”full”][ultimate_heading main_heading=”Vorl\u00e4ufige Festsetzung von Steuerzinsen.” alignment=”left”][\/ultimate_heading][ultimate_spacer height=”50″]

For tax arrears or refunds in connection with the assessment of income tax, corporate income tax, trade tax and value added tax, the so-called full interest is eligible (Section 233a of the German Fiscal Code). Interest regularly begins to accrue after a 15-month grace period following the end of the assessment period. The statutory interest rate is 0.5% for each full month, i.e. 6% per annum (Section 238 of the German Tax Code). However, in view of the ongoing low-interest phase, the German Federal Fiscal Court considers the level of the interest rate to be unconstitutional on a regular basis from 2012.<\/p>\n<\/div><\/div>

At the Federal Constitutional Court<\/a><\/h2>\n

two proceedings are already pending concerning interest assessments for the years from 2010 and 2012 respectively. Insofar as the tax authorities determine tax interest, this is now only done on a provisional<\/strong> basis. This is intended to avoid corresponding objection procedures.<\/p>\n<\/div><\/div>

Following three rulings by the Federal Fiscal Court<\/h2>\n

the tax authorities<\/a> have now adjusted their view. Accordingly, the loss of a loan by the shareholder, e.g. due to the insolvency of the GmbH, does not<\/strong> in principle lead to subsequent acquisition costs of the investment. The loan loss would therefore be regarded as income-related expenses in the case of capital income and could only be offset against other positive income from capital assets.<\/p>\n

However, for a transitional period, the tax authorities apply a special rule. In the case of loans previously considered equity-substituting that were granted on or before September 27, 2017, a loan loss may also be treated as a subsequent acquisition cost of the investment.<\/p>\n<\/div><\/div>

If the Federal Constitutional Court finds the interest rate to be unconstitutional, the provisional interest assessments (tax interest) will be amended accordingly ex officio; in the case of refund interest, this could possibly be disadvantageous for the persons concerned.<\/p>\n

 <\/p>\n

More questions? Contact us<\/a>.<\/p>\n<\/div><\/div>

(For further comments, information and examples, please refer to our information letter 07\/2019<\/a>).<\/em><\/strong><\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

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Neumann & Walczak – tax consulting company GmbH – Robert-Bosch-Strasse 1 – 59439 Holzwickede<\/p>\n


\n Neumann Walczak & Partner Tax Consultant and Lawyer – Partnership – <\/span>
\n<\/span>Robert-Bosch-Strasse 1 – 59439 Holzwickede<\/p>\n

\n

Website: www.neumann-walczak.de – E-mail: info@neumann-walczak.de<\/p>\n

Phone: (0049) 02301 – 91 291 0 – Fax: (0049) 02301 – 91 291 21<\/span><\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/section>\n","protected":false},"excerpt":{"rendered":"[vc_single_image image=\"5499\" img_size=\"full\"][ultimate_heading main_heading=\"Vorl\u00e4ufige Festsetzung von Steuerzinsen.\" alignment=\"left\"][\/ultimate_heading][ultimate_spacer height=\"50\"]For tax arrears or refunds in connection with the assessment of income tax, corporate income tax, trade tax and value added tax, the so-called full interest is eligible (Section 233a of the German Fiscal Code). Interest regularly begins to accrue after a 15-month grace period following the...","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[776,535,1099,1068],"tags":[1294],"class_list":["post-10932","post","type-post","status-publish","format-standard","hentry","category-back-taxes","category-information-letter","category-interest","category-tax-interest","tag-tax-refunds"],"acf":[],"_links":{"self":[{"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/posts\/10932","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/comments?post=10932"}],"version-history":[{"count":2,"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/posts\/10932\/revisions"}],"predecessor-version":[{"id":10974,"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/posts\/10932\/revisions\/10974"}],"wp:attachment":[{"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/media?parent=10932"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/categories?post=10932"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tunal-stb.de\/en\/wp-json\/wp\/v2\/tags?post=10932"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}