Late filing penalty also affects pensioners
For tax returns relating to a calendar year or a date, the late surcharge for each month or part thereof is 0.25% of the assessed tax reduced by the assessed advance payments and the tax deductions to be credited (e.g. wage tax and capital gains tax), but at least €25 for each month or part thereof of the delay.
In cases of subsequent payment, the surcharge is always fixed. It may also be more than 10% of the tax assessed. If the tax authority still has a discretionary power (e.g. in case of tax = 0 € or in cases of refund) a surcharge can also be set.
Pensioners are obliged to file a tax return if their income consists in whole or in part of income from employment from which income tax has been withheld and if they receive pensions whose taxable portion exceeds €410 or if the pensioner has only other income and has exceeded the personal exemption (2019: €9,168 or €18,336).
Tax reduction for energy measures in buildings used for own residential purposes
The legislator has issued a new regulation to support the political goal of reducing greenhouse gases by 2030. Tax incentives for owner-occupied housing were introduced from 2020.
By deducting the tax liability, as many owners of residential buildings as possible should benefit from the measure.
The measures concerned will be supported between 1 January 2020 and 31 December 2029. The closing must have taken place before 1 January 2030.
Economic stimulus package of the Federal Government
In view of the corona crisis, the German government agreed on a comprehensive economic stimulus package on 3 June 2020. From a tax perspective, the following measures, among others, are planned:
- Reduction of VAT rates from 1.7.-31.12.2020,
- The due date for payment of import VAT is to be postponed to the 26th of the following month,
- A child bonus of € 300 is paid for each child entitled to child benefit,
- The amount of relief for single parents will be increased from €1,908 to €4,008 for the years 2020 and 2021 for a limited period of 2 years,
- The tax loss carryback is to be extended for the years 2020 and 2021 to a maximum of € 5 million and € 10 million (in the case of joint assessment),
- Introduction of declining balance depreciation with a factor of 2.5 compared to the current depreciation rate and a maximum of 25% per year for movable fixed assets in 2020 and 2021 and others.
Reduction of the VAT rate for Rates as of 1.7.2020
Following the entry into force of the second Corona Tax Assistance Act, the general VAT rate will be reduced from 19% to 16% and the reduced VAT rate from 7% to 5% from 1.7. to 31.12.2020.
The new rates are to be applied to supplies of goods, services and intra-Community acquisitions made (effected) between 1.7. and 31.12.2020. The point in time at which the respective transaction is executed is always decisive. The time of the contractual agreement and the time of crediting or invoicing is not relevant.
If partial services have been agreed, there are separate transitional arrangements.
Tax-free corona bonus for employees
The corona bonus paid by the employer to his employees between 1.3.2020 and 31.12.2020 is tax-free up to an amount of €1,500.
Further details on the individual points, we can gladly explain to you in a personal consultation.
This information does not replace tax advice - it is a general statement. Each case must be examined separately.