Tax Advisor for German Income Tax Returns
What is the income tax return?
The income tax return is a written declaration of your income situation. It is used to calculate the amount of tax a person must pay to the tax office or to determine whether they are entitled to a refund. A tax advisor can help you take advantage of any tax refunds that may be available.
Do I have to submit an income tax return?
There are two types of taxable private individuals in Germany: those who are assessed on application and those who are compulsorily assessed.
If you are assessed on application, you are not obliged to submit an income tax return. This is generally the case if you are “only” an employee. Submitting a tax return to the tax office in your home town constitutes an application for assessment.
Why does the German tax office ask me as an employee to submit a declaration?
If you have other sources of income as an employee, e.g. a rental or other income, you switch from an application assessment to the so-called compulsory assessment - here the tax office asks you to submit the tax return promptly.
Employees also often switch to compulsory assessment if, for example, they receive or have received short-time working allowance, unemployment benefit or maternity benefit, or if they are single parents.
But why is this the case? This income is generally tax-free, but increases your tax burden. This is due to the so-called progression clause. This means that you usually have a higher tax rate for your taxable income than if you did not receive such tax-free income replacement benefits.
The purpose of compulsory assessment in such cases is to ensure that your taxes are calculated correctly and that you do not inadvertently pay too much or too little tax. The tax office wants to ensure that you take advantage of the right tax benefits and that your tax burden is calculated accurately in order to avoid any additional payments or tax repayments.
How much does a tax return with a tax advisor cost?
Fees based on the Tax Advisor Remuneration Ordinance: Our tax advisors prepare all tax returns on the basis of the standard statutory fees set out in the German Tax Advisor Remuneration Ordinance (Steuerberatervergütungsverordnung, StBVV). Only additional work is charged separately on an hourly basis. We therefore offer you our particular specialization at competitive conditions.
Until when can I submit my income tax return in Germany?
If there is no reason for mandatory assessment, the regular assessment period of four years applies. This means that you can submit the return for the last four years in a bundle, e.g. for the years 2019-2022 by December 31, 2023.
The submission deadlines for those obliged to submit differ from this and can also vary from year to year. It is therefore important to check the current deadlines. As a rule, the deadline for submitting income tax returns is the following year. For example, the deadline for submitting the 2022 income tax return ends on October 2, 2023, for non-tax-advised persons - for tax-advised persons, the deadline ends on July 31, 2024. This means that anyone who hires a tax advisor has considerably more time to submit their tax returns.
Your tax advisor for your income tax return in Germany
As a wealthy private individual, do you need support with your income tax? Our team will be happy to help you. Feel free to contact us for a non-binding offer. The best way to reach us is at info@winheller.com or by phone on +49 69 76 75 77 85 21.
Alexander Bosch
Senior Tax Accountant, Specialist Wages and Salary (IFU/ISM)
Martin Wimmer
M.A. Taxation
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