Can I defer the trade tax as well?
September 1, 2022 | 40,00 EUR | answered by Simon Schaaf
Dear Tax Advisor,
I am Norbert Schaaf and I run a small business in the IT industry. In recent years, our business has been doing well and we have had to pay trade tax regularly. Unfortunately, this year we have experienced a decrease in turnover due to the current economic situation, and our liquidity is severely limited.
Since we are currently unable to pay the trade tax in full, I am wondering if it is possible to defer the trade tax or arrange a payment plan. I am concerned that we could run into financial difficulties if we are unable to meet the tax burden.
Are there legal options to defer the trade tax or arrange a payment plan? What steps do we need to take and what documents are required for this? I would greatly appreciate it if you could provide me with information and advice on how to improve our financial situation and avoid potential problems.
Thank you in advance for your assistance.
Sincerely,
Norbert Schaaf
Dear Norbert Schaaf,
thank you for your inquiry regarding the deferral or installment payment of the trade tax due to the current economic situation of your company. It is understandable that you are concerned about your financial situation, but there are indeed legal options to defer the trade tax or arrange for installment payments.
First of all, it is important to know that trade tax is a local tax levied by the respective municipality. Therefore, there may be differences in regulations and procedures. However, it is usually possible to apply for a deferral or installment payment in case of financial hardship.
To apply for a deferral or installment payment, you generally need to submit an informal request to your local tax office. In this request, you should explain your financial situation and why you are unable to pay the trade tax in full. It may also be helpful to provide a liquidity plan that shows how you can repay the tax debt in the future.
In addition, you can also consult with your tax advisor to receive support in applying for the deferral or installment payment. Your tax advisor can also help you gather all the necessary documents and ensure that the application is filled out correctly.
It is important to note that the decision on the deferral or installment payment ultimately lies with the tax office. The tax office may request additional information or evidence to verify your financial situation. Therefore, it is important to be transparent and cooperative and provide all the necessary documents.
Overall, it is possible to defer the trade tax or arrange for installment payments if there is a financial hardship. I recommend that you promptly contact your tax advisor and the relevant tax office to discuss your situation and submit the application for deferral or installment payment.
I hope this information is helpful to you and wish you success in overcoming your financial challenges.
Best regards,
Simon Schaaf
