Finance Minister Lindner corrects unconstitutional tax rate

Dlike Federal Ministry of Finance proposes a significant reduction in interest on additional tax claims and tax refunds. The corresponding rate is to drop from the current 0.5 percent per month to 0.15 percent, i.e. 1.8 percent per year. Every three years it should be checked whether the rate is still appropriate.

This emerges from the draft bill to amend the tax code, which is available to the FAZ. However, changes are still possible here, since the federal states have to agree to the new regulation. As a result of the new regulation, the federal, state and local governments are threatened with significant revenue shortfalls, and vice versa, citizens and companies will be relieved accordingly on balance.

For this year, the Federal Ministry of Finance is expecting a drop in revenue of almost 2.5 billion euros for the Treasury. Further defaults are expected in subsequent years, starting at EUR 530 million and later increasing to EUR 800 million per year.

Businesses pay interest on back taxes

Interest on additional claims and reimbursements generally begins 15 months after the tax was incurred. There were slightly longer deadlines for the 2019 and 2020 assessment periods due to the corona pandemic. For income tax 2019, it started at the beginning of October 2021, for 2020 it will start in the middle of this year.

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