Tax procedure (municipal tax)

General information

Matters relating to the tax procedure (collection procedures, administrative offences) are governed in the Bundesabgabenordnung (Law on Tax Procedure).

Penalty for late payment

If a tax debt is not paid by the date it is due at the latest, this generally incurs a penalty for late payment of 2 per cent of the tax amount.

Payment facilities

Upon justifiable request from the taxable party, the tax authorities can postpone the date upon which the tax is due to be paid (deferral) or permit payments in instalments.

This request must be submitted to the competent municipality on the due date for payment at the latest. If the request is granted, late payment interest is generally also charged.

If neither payment facilities nor suspension of collection have been granted in an appeal procedure (Beschwerdeverfahren), taxes due are generally demanded and may also be forcibly collected in the given case.

Leniency

Lastly, in particular cases of hardship, a tax amount may be (fully or partially) reviewed.

Administrative offences

There are penalties in place for certain breaches of obligations under the Kommunalsteuergesetz.

Under the Kommunalsteuergesetz, penalties are imposed on those who

• do not pay enough municipal tax, intentionally or negligently, in breach of a notification or disclosure obligation or the duty to tell the truth under tax law,
• intentionally do not pay the municipal tax by the fifth day following the due date at the latest, and also have not made the tax authorities aware of the amount of tax owed by this date,
• intentionally do not file the municipal tax declaration in a timely manner or breach an obligation under tax law relating to the keeping or retention of books or other records.