Reduction of trade tax prepayments possible

In addition to income tax and corporation tax, the tax authorities are now also making concessions to companies plagued by high energy costs when setting advance trade tax payments.

Due to the drastic rise in energy costs, the Federal Ministry of Finance has already instructed the tax authorities to take various measures to accommodate taxpayers who are particularly affected by the taxes administered by the federal government. The federal states have now followed suit, at least in part, with similar decrees in relation to trade tax. Accordingly, the tax office can arrange for the adjustment of advance trade tax payments if it is aware of changed circumstances with regard to trade income. This applies in particular to cases in which the tax office already adjusts income tax and corporation tax prepayments. There are no strict requirements for the review of the conditions for applications received by March 31, 2023.

Decisions on applications will be made promptly. A retroactive adjustment of advance trade tax payments for 2022 is also possible within the scope of the discretionary decision. Any applications for deferral and remission, on the other hand, are generally to be addressed to the municipalities, unless the assessment and collection of trade tax in the respective location has not been transferred to the municipalities.