New interest rate planned for interest on arrears and refunds

For interest periods beginning on or after January 1, 2019, the Federal Ministry of Finance plans to lower the interest rate for interest on arrears and refunds to 1.8 % per year.

The Federal Ministry of Finance has submitted a draft for the adjustment of the interest rate for interest on arrears and refunds as required by the Federal Constitutional Court. The interest rate is to be retroactively reduced to 0.15 % per month, or 1.8 % per year, for periods beginning January 1, 2019. This interest rate is to be adjusted every three years, with effect for subsequent interest periods, to reflect changes in the prime rate if the prime rate has changed by more than 1 % since the last adjustment. The first evaluation is scheduled for January 1, 2026. For the time being, the amendment only applies to interest on refunds and back payments because the Federal Constitutional Court has not yet ruled on interest on deferrals, suspensions or evasion.