Annual financial statements and tax returns for 2018

When preparing the 2018 financial statements and tax returns, there are some changes from last year that need to be considered for the first time.

Some of last year's changes in tax law will become noticeable for the first time in the annual financial statements or tax returns for 2018. In addition to changes in filing deadlines and late filing penalties, this also affects the valuation of low-value assets and capital gains from fund units.

• Low-value assets: The value limit for immediate depreciation of low-value assets was almost doubled to 800 euros in 2018. The value limit for the creation of a collective item was also raised. Anyone who makes use of the collective item rule can now immediately fully depreciate assets up to a value of 250 euros instead of the previous 150 euros in the 2018 balance sheet.

• Investment Tax Reform: The investment tax reform has changed the rules for the taxation of income from investment funds as of 2018. The reform provides for a legal form-dependent exemption for the taxation of income from fund units held as business assets and radically simplifies the disclosure of income in the tax return for private investors. Because in the case of a fiscal unity for income tax purposes, natural persons can also be the controlling company in addition to corporations, from 2019 the fund income will not be taken into account at the level of the controlled company, but only at the level of the controlling company.

• Deadlines: The deadlines for tax returns for the years from 2018 will be extended by two months. Without a tax advisor, the returns are thus due this year for the first time on July 31, even though several federal states have already applied the extended filing deadline in part or in full in previous years. For tax returns prepared by a tax advisor, there are now even 14 months, provided the tax office does not specifically request the return in advance.

• Delay Surcharge: In connection with the extended filing deadlines, there are new rules for the surcharge for late filing of tax returns for the years starting 2018. Now, the tax office is obliged to impose a surcharge for late filing if no extension of the deadline has been requested and the tax return is not submitted to the tax office 14 months after the end of the assessment period or taxation date. For each month or part thereof of delay, 0.25 % of the assessed tax, but at least 25 euros, is then due.