Can I pay the trade tax in installments as well?
September 16, 2023 | 50,00 EUR | answered by Isabel Möller
Dear tax advisor,
My name is Lukas Weiss and I run a small business in Frankfurt. Due to the current economic situation, my revenues have significantly decreased and I am having difficulties paying the trade tax in one lump sum. Therefore, I would like to know if it is possible to pay the trade tax in installments.
Currently, it seems that my income is not sufficient to pay the trade tax in one lump sum. This is causing me great concern, as I am unsure how to manage the payment. I want to avoid any payment defaults and any additional problems with the tax office.
Therefore, my question to you is: Is it possible to pay the trade tax in installments? Are there specific requirements that need to be met for this? What could a possible installment payment agreement look like and what steps would I need to take for this?
I would be very grateful if you could assist me with this issue, as it is currently a significant financial burden for me. I would greatly appreciate your support and expertise.
Best regards,
Lukas Weiss
Dear Mr. Weiss,
Thank you for your inquiry regarding the possibility of paying the trade tax in installments. Indeed, under certain conditions, it is possible to enter into a payment plan with the tax office to reduce the financial burden and avoid payment default.
First and foremost, it is important to note that the tax office is generally interested in collecting taxes and is usually willing to negotiate individual payment agreements with taxpayers. However, it should be noted that such a payment plan is not automatically granted and certain conditions must be met.
Usually, the conditions include being able to credibly demonstrate that due to your current financial situation, you are unable to pay the trade tax in a lump sum. For this, you will typically need to provide the tax office with relevant documents such as a current profit and loss statement, a liquidity plan, or other evidence of your financial situation.
If the tax office agrees to your payment plan, an appropriate installment amount will usually be determined, which you will need to pay monthly or quarterly. The exact modalities and conditions can vary from case to case and should be discussed with the responsible officer at the tax office.
To apply for a payment plan, you should submit a written request to the relevant tax office and request a payment plan. In your request, you should outline your current financial situation and request the option of paying in installments. It is also advisable to propose specific amounts and durations for the installment payments.
I hope this information is helpful to you and that you can find a suitable solution to your problem. If you have any further questions or need assistance, please feel free to contact me.
Best regards,
Isabel Möller
Tax advisor
