The Tax Return

Every taxpayer must submit a tax return to the tax authority (Finanzamt) once a year. The tax authorities are organized locally. The authority in the place of the commercial domicile of the company is responsible.

The return for the previous calendar year must be submitted by May 31 of the subsequent year, but this deadline can be extended on request. Depending on the expected amount of taxes to be paid, the tax authorities can determine the period when tax payments are due.

The tax authorities provide information on tax issues. However, companies in particular should seek the services of a tax consultant to ensure the tax return is completed as favorably as possible.

The tax return itself consists of individual forms for each type of income. Where applicable, documents for expenses must be included or provided at a later date at the request of the tax authority. Employees pay wage tax - the term used for personal income tax when levied from employed jobholders. Employers are required to deduct wage tax from the employee’s wages and transfer it to the tax authorities.

Declarations on wage tax and VAT can easily be sent to the tax authority online. Detailed information on tax return procedures for investors is provided by the Tax Information Centre (Steuerliches Info-Center, SIC).