Is there a possibility to defer business taxes if my company is facing financial difficulties?
March 30, 2022 | 40,00 EUR | answered by Isabel Möller
Dear expert for trade tax,
I am Gerald Fischer, owner of a company that has run into financial difficulties. Due to the current economic situation, I am having trouble paying the trade taxes on time. I am worried about the future of my company and wonder if there is a possibility to defer the trade taxes in order to receive financial relief.
Currently, my company is in a tough situation as revenues have decreased and costs have risen. This has left me without the necessary capital to fully settle the trade taxes. I fear that non-payment of the trade taxes could lead to further financial problems and therefore I am looking for possible solutions.
My question to you is: Is it possible to defer the trade taxes to prevent my company from financial instability? If so, how does it work exactly and what steps do I need to take for this? I would greatly appreciate your support and expertise in this difficult situation.
Thank you in advance for your help.
Best regards,
Gerald Fischer
Dear Mr. Fischer,
Thank you for your inquiry regarding the deferral of the trade tax in your financially difficult situation. It is understandable that you are concerned about the future of your company and are looking for ways to obtain financial relief.
In principle, it is possible to defer the trade taxes to give your company some breathing room. Deferral means that the due date for trade tax payments is postponed to a later date. This can give you more time to improve your financial situation and pay the taxes.
To apply for a deferral of trade tax, you need to submit an informal request to the relevant tax office. In this request, you should explain your financial situation and explain why it is currently not possible for you to pay the trade taxes on time. It is important to attach all relevant documents and evidence that prove your financial situation.
The tax office will review your request and make a decision on the deferral. This will include assessing whether the deferral is in the public interest and whether you can demonstrate credibly that you can pay the taxes at a later date. It is important to work transparently and cooperatively with the tax office to increase your chances of deferral.
However, it is important to note that deferral of trade tax is not a permanent solution and is usually associated with interest and potentially also conditions. Therefore, it is advisable to take measures to improve your financial situation in the long term and to be able to pay the trade taxes on time in the future.
I hope this information is helpful to you and wish you success in applying for the deferral of trade tax. If you have any further questions, please do not hesitate to contact me.
Sincerely,
Isabel Möller
