Last Updated on June 1, 2021 by LawEuro
The Fiscal Code of Germany
2nd Subchapter
Tax returns
Section 149
Filing tax returns
(1) Tax laws shall specify the persons obliged to file a tax return. In addition, any person requested by the revenue authority to file a tax return shall be obliged to do so. The request may be made by way of public announcement. The obligation to file a tax return shall continue to apply even if the revenue authority has estimated the tax base in accordance with section 162.
(2) Unless otherwise required under tax law, tax returns relating to a calendar year or to a legally specified period of time shall be filed no later than seven months after the end of the calendar year or seven months after the legally specified period of time. In the case of taxpayers who calculate their profits from agricultural and forestry activities on the basis of a financial year that deviates from the calendar year, the filing period shall not end before the expiration of the seventh month following the end of the financial year that began in the calendar year.
(3) Insofar as persons, companies, associations, authorities or corporations as described in sections 3 and 4 of the Tax Consultancy Act are commissioned with the preparation of
1. income tax returns in accordance with section 25(3) of the Income Tax Act, with the exception of income tax returns described in section 46(2) number 8 of the Income Tax Act,
2. corporation tax returns in accordance with section 31(1) and (1a) of the Corporation Tax Act, tax base determination returns in accordance with section 14(5), the fourth sentence of section 27(2), the fourth sentence of section 28(1) or the second sentence of section 38(1) of the Corporation Tax Act, corporation tax apportionment returns in accordance with section 6(7) of the Tax Revenue Reallocation Act,
3. returns to determine the base amount of trade tax or apportionment returns in accordance with section 14a of the Trade Tax Act,
4. VAT returns for the calendar year in accordance with section 18(3) of the VAT Act,
5. returns for the (a) separate or (b) separate and joint determination of income subject to corporation tax or income tax in accordance with section 180(1), first sentence, number 2 in conjunction with section 181(1) and (2),
6. returns for the separate determination of tax bases in accordance with the “Ordinance on the separate determination of tax bases” adopted in accordance with section 180(2) or
7. returns for the separate determination of tax bases in accordance with section 18 of the External Tax Relations Act,
such returns shall be filed no later than the last day of February or, in cases where the second sentence of subsection (2) above applies, 31 July of the second calendar year following the tax period, subject to the provisions of subsection (4) below.
(4) A tax office may order that the returns referred to in subsection (3) above must be filed prior to the last day of February in the second calendar year following the tax period if
1. with respect to the taxpayer in question,
a) returns for the previous tax period were not filed or were filed late,
b) retroactive prepayments for the previous tax period were imposed for the previous tax period within a period of three months prior to the filing of the tax return or within a period of three months prior to the start of interest accrual under section 233a(2), first sentence,
c) prepayment amounts for the tax period were reduced outside of an assessment procedure,
d) the assessment for the previous tax period led to a final payment of at least 25 percent of the assessed tax or more than 10,000 euros,
e) the tax assessed on the basis of a tax return as described in subsection (3) numbers 1, 2 or 4 above is likely to lead to a final payment of more than 10,000 euros or
f) an external audit is planned,
2. the taxpayer in question has established or discontinued a business during the tax period or
3. losses have been incurred by persons with holdings in companies or partnerships.
A deadline of four months following the issuance of the order shall be set for complying with the order. Furthermore, tax offices may, on the basis of automated random selection, order that the returns referred to in subsection (3) above must be filed prior to the last day of February in the second calendar year following the tax period, with a deadline of four months following issuance of the order. Orders issued in accordance with the third sentence above shall indicate that they are based on an automated random selection; no further explanation shall be required. In cases where the second sentence of subsection (2) above applies, 31 July of the second calendar year following the tax period shall apply instead of the last day of February. An order issued in accordance with the first or third sentence above may not set a shorter deadline for filing the return than the deadline stipulated in subsection (2) above. In cases where the first or third sentence above applies, an order shall cover all returns referred to in subsection (3) that the taxpayer in question must file for the same tax period or tax date.
(5) Subsection (3) above shall not apply to VAT returns for the calendar year, if the commercial or professional activity ceased prior to or with the expiration of the tax period.
(6) The highest revenue authority of a Land, or the Land revenue authority it designates, may authorise persons, companies, associations, authorities or corporations as described in sections 3 and 4 of the Tax Consultancy Act to file by certain deadlines a certain percentage of returns as referred to in subsection (3) above. If returns as described in subsection (3) above are included in a procedure under the first sentence above, the third sentence of subsection (4) shall not apply. The arrangement of procedures under the first sentence above shall lie within the discretionary power of the highest revenue authorities of the Länder and shall not be actionable.
Section 150
Format and content of tax returns
(1) A tax return must be filed using an officially prescribed form if
1. an electronic tax return is not prescribed,
2. a legally or officially permitted electronic tax return is not filed,
3. an oral or implied tax return is not permitted and
4. the documentation of an oral tax return filing at a tax office in accordance with section 151 does not come into consideration.
Section 87a(1), first sentence, shall apply only if an electronic tax return is prescribed or permitted. The taxpayer shall calculate the tax in the tax return himself where this is required by law (self-assessed tax return).
(2) The information contained in the tax returns shall be the truth to the best of the declarant’s knowledge and belief.
(3) Where the tax laws require the taxpayer to sign the tax return personally, signature by an authorised party shall be permissible only where the taxpayer’s physical or mental health or his extended absence prevents him from signing. A personal signature may be subsequently required where such hindrance ceases to exist.
(4) The tax returns shall be accompanied by the documents required by the tax laws. Third parties shall be obliged to issue any certificates required for this purpose.
(5) Tax return forms may include questions that, in addition to tax-related documents, are necessary for statistical purposes under the Tax Statistics Act. Revenue authorities may also require information from taxpayers that is necessary to implement the Federal Training Assistance Act. In verifying the information, the revenue authorities shall have the same powers as those it has when clarifying matters relevant for taxation.
(6) In order to facilitate and simplify the automated taxation procedure, the Federal Ministry of Finance may, by way of ordinances issued with the consent of the Bundesrat, determine whether and under which conditions tax returns or other data necessary for the taxation procedure may be transmitted, wholly or partly, via remote data transfer or on machine-readable data storage devices. Ordinances may enact rules that differ from the provisions contained in section 72a and sections 87b to 87d. Ordinances shall not require the consent of the Bundesrat where they concern motor vehicle tax, aviation tax, insurance tax, or excise duties with the exception of beer duty.
(7) If tax returns that are filed using (a) officially prescribed forms, or (b) officially prescribed data sets via remote data transmission, can lead to a fully automated tax assessment in accordance with the first sentence of section 155(4), then the tax return shall include a section or data field that gives taxpayers the opportunity to provide information that in their view establishes cause for processing by officials. Data transmitted to the revenue authorities by notifying entities in accordance with section 93c shall be deemed to have been provided by the taxpayer, insofar as the taxpayer provides no information to the contrary in a section or data field to be included for this purpose in the tax return.
(8) Where the tax laws require that the revenue authority may, upon application to avoid undue hardship, waive a transmission of the tax return using an officially prescribed data set via remote data transmission, such an application shall be complied with where a submission of the return using an officially prescribed data set via remote data transmission is economically or personally unreasonable for the taxpayer. This shall in particular be the case where the creation of the technical means for a remote data transmission of the officially prescribed data set would be possible only at considerable financial expense or where the taxpayer’s individual knowledge and skills mean he is unable or not fully able to use the means of remote data transmission.
Section 151
Documentation of an oral tax return filing at a tax office
A tax return that is to be filed in writing or electronically may be filed orally and documented at the offices of the competent revenue authority in cases where, due to personal circumstances, the taxpayer cannot reasonably be expected to transmit the return electronically or file it in written form, and particularly in cases where the taxpayer is not able to complete a self-assessment on his own or have the self-assessment done by a third party.
Section 152
Late-filing penalty
(1) Any person who fails to comply with the requirement to file a tax return, or who fails to do so on time, may be charged a late-filing penalty. No late-filing penalty shall be charged if the person required to file the return plausibly explains that the delay is excusable; if the failure to fulfil the requirement is the fault of a representative or aide, the fault shall be attributed to the person required to file the return.
(2) Notwithstanding subsection (1) above, a late-filing penalty shall be charged if a tax return relating to a calendar year or a legally specified period of time is not filed
1. within 14 months after the end of the relevant calendar year or within 14 months after the end of the tax period,
2. within 19 months after the end of the relevant calendar year or within 19 months after the end of the tax period in cases where the second sentence of section 149(2) applies or
3. by the deadline specified in an order issued in accordance with section 149(4).
(3) Subsection 2 shall not apply
1. if the revenue authority extends the deadline for filing the tax return in accordance with section 109 or extends this deadline retroactively,
2. if the assessed tax equals zero or a negative amount,
3. if the assessed tax does not exceed the sum of assessed prepayments and withheld taxes to be credited or
4. to annual wages tax returns.
(4) If multiple persons are required to file a tax return, the revenue authority may decide, at its discretion, whether it will charge the late-filing penalty to one of the persons required to file the return, to some of the persons required to file the return or to all of the persons required to file the return. If the late-filing penalty is charged to some or all of the persons required to file the return, these persons shall be jointly liable for the penalty. In cases where section 180(1), first sentence, number 2a applies, the late-filing penalty is to be charged first and foremost to the persons required to file a return under section 181(2), second sentence, number 4.
(5) Subject to the second sentence below, subsection (8) below, and the second sentence of subsection (13) below, the late-filing penalty shall be 0.25 percent of the assessed tax for each month or part of a month that a return is late, and no less than 10 euros per month or part of a month that a return is late. For tax returns relating to a calendar year or to a legally specified period of time, the late-filing penalty shall be 0.25 percent of the assessed tax, less the sum of assessed prepayments and withheld taxes to be credited, for each month or part of a month that a return is late, and no less than 25 euros for each month or part of a month that a return is late. If, after the statutory deadline has expired, revenue authorities request for the first time that a person submit a tax return by a deadline specified in the request, and if, up until he receives the request, the taxpayer can assume that he is not required to submit a tax return, then the late-filing penalty shall be calculated only for each month or part of a month that follows the expiration of the deadline specified in the request.
(6) Subsections (1) to (3) and the first two sentences of subsection (4) above shall apply accordingly to returns for the separate determination of tax bases, returns to determine the base amount of trade tax and apportionment returns, subject to subsection (7) below. The late-filing penalty shall be 25 euros for every month or part of a month that a return is late.
(7) The late-filing penalty on returns for the separate determination of earnings subject to income tax or corporation tax shall be 0.0625 percent of the assessed sum of positive income for each month or part of a month that a return is late, and no less than 25 euros for each month or part of a month that a return is late.
(8) Subsection (5) above shall not apply to tax returns that must be filed on a quarterly or monthly basis or to wages tax returns that must be filed on an annual basis in accordance with the second half-sentence of the second sentence of section 41(2) of the Income Tax Act. In these cases, the frequency of missed deadlines, the length of time by which such deadlines were missed, and the amount of tax due shall be taken into account when assessing the amount of the late-filing penalty.
(9) In cases where a tax return is not filed, the late-filing penalty shall be calculated for a period of time that extends to the end of the date when the initial tax assessment takes effect. The same shall apply to the failure to file a return to determine the base amount of trade tax, an apportionment return and a return for the separate determination of tax bases.
(10) Late-filing penalties shall be rounded down to the nearest euro and shall not exceed 25,000 euros.
(11) Late-filing penalties shall be charged in conjunction with the issuance of a tax assessment notice, a notice specifying the base amount of trade tax or an apportionment notice; in cases where subsection (4) applies, they can be charged in conjunction with a notice of determination.
(12) If (a) an assessment of a tax or base amount of trade tax, (b) an apportionment notice or (c) a separate determination of tax bases is cancelled, then any late-filing penalty charged in connection therewith shall also be cancelled. If (a) an assessment of a tax, (b) the crediting of prepayments or withheld taxes or (c) a separate determination of earnings subject to income tax or corporation tax (as referred to in subsection (7) above) is amended, withdrawn or revoked, or corrected in accordance with section 129, then any late-filing penalty charged in connection therewith shall be reduced or increased accordingly insofar as the minimum penalty amounts do not apply following the amendment or correction. This shall not apply to loss carry-backs as defined in section 10d(1) of the Income Tax Act or events with retroactive effect as described in section 175(1), first sentence, number 1 or section 175(2).
(13) Subsection (2), the second sentence of subsection (4), the second sentence of subsection (5) and subsection (8) above shall not apply to tax returns that must be filed with main customs offices, subject to the second sentence above. The second sentence of subsection (8) above shall apply accordingly to the assessment of late-filing penalties for aviation tax returns.
Section 153
Correction of returns
(1) Where a taxpayer subsequently realises before the period for assessment has elapsed
1. that a return submitted by him or for him is incorrect or incomplete and that this can lead or has already led to an understatement of tax, or
2. that a tax amount payable by way of tax mark or tax stamp was not paid in the correct amount,
he shall be obliged to indicate such without undue delay, and to effect the necessary corrections. This obligation shall also concern the taxpayer’s universal successor and the persons acting for the universal successor or the taxpayer pursuant to sections 34 and 35.
(2) The notification obligation shall further apply where the conditions for tax exemption, tax reduction or other tax privileges subsequently cease to exist, whether in full or in part.
(3) In the case of goods for which a tax privilege has been granted subject to specific conditions, any person who wishes to use such goods in a manner that does not comply with the specified conditions shall be obliged to notify the revenue authority accordingly in advance.
3rd Subchapter
Authenticity of accounts
Section 154
Authenticity of accounts
(1) No one may use a false or fictitious name, for themselves or for a third party, to open an account or cause entries to be made in an account, place in safe custody or pledge valuables (money, securities, precious items) or procure a safe deposit box.
(2) Any person or entity that holds accounts, keeps valuables in safe custody or as a pledge, or issues safe deposit boxes (obligated party) shall
1. verify in advance the identity and address of each person with power of disposal and each beneficial owner as defined in the Money Laundering Act and
2. record the relevant information in suitable form, in the case of an account in the account itself.
If a person with power of disposal is a natural person, section 11(4) number 1 of the Money Laundering Act shall apply accordingly. Obligated parties shall ensure that they are able at all times to provide revenue authorities with information on the accounts or safe deposit boxes over which a person has power of disposal or on the valuables that a person has placed in safe custody or given as a pledge. Such business relations shall be monitored on a continuous basis and the data that are to be collected under the first sentence above shall be updated at appropriate intervals of time.
(2a) In addition, credit institutions shall collect and record the following data for each account holder, each other person with power of disposal and each beneficial owner as defined in the Money Laundering Act:
1. the identification number as per section 139b and
2. the business identification number as per section 139c or, if a business identification number has not yet been issued and if the taxpayer is not a natural person, the tax number that applies for the taxation of income.
Contracting parties and any persons acting on their behalf shall provide credit institutions with the data to be collected under the first sentence above and shall notify credit institutions without delay of any changes that occur during the period of the business relationship. The first and second sentences above shall not apply to credit accounts if the credit provided serves the sole purpose of financing private consumer goods and the credit line does not exceed the amount of 12,000 euros.
(2b) If, by the time the business relationship is established, the contracting party or any person acting on his behalf fails to provide the credit institution with a data subject’s identification number that is to be collected under subsection (2a), first sentence, number 1 above and the credit institution has not rightfully obtained such data subject’s identification number on other grounds, the credit institution shall use an automated procedure to request the identification number from the Federal Central Tax Office within a period of three months following the establishment of the business relationship. Only the data subject’s data specified in section 139b(3) may be included in the request. The Federal Central Tax Office shall provide the credit institution with the data subject’s identification number insofar as the data submitted by the credit institution match the data stored by the Federal Central Tax Office in accordance with section 139b(3).
(2c) If, due to a lack of cooperation from the contracting party or any persons acting on his behalf, the credit institution cannot ascertain the data to be collected under the first sentence of subsection (2a) above, the credit institution shall record this fact on the account. In such cases, the credit institution shall notify the Federal Central Tax Office of the accounts concerned, together with the data it has collected for such accounts in accordance with subsection (2) above; these data are to be submitted, for all such accounts opened during a given calendar year, by February of the following year.
(2d) For individual cases or for certain categories of cases, revenue authorities may permit the requirements under subsections (2) to (2c) above to be eased if compliance with such requirements causes undue hardship and if easing the requirements does not have an adverse impact on taxation.
(3) In the event that subsection (1) above is contravened, credit balances, valuables and the contents of safe deposit boxes may be returned only with the consent of the tax office responsible for assessing the income and corporation tax of the person who has power of disposal.
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