How do you defend yourself against a late payment surcharge?

The tax return must be submitted to the tax office within a legally specified period. For taxpayers without professional advice, this is usually 31 July of the following year. If you have tax advice, the deadline is extended. A late submission may incur a late fee. A distinction is made between discretionary and legally prescribed surcharges.

Late fees at the discretion of the tax office

The tax office may waive a late fee if the tax return is submitted within a certain grace period. This is usually 14 months, but may be longer in exceptional situations (e.g. pandemic-related regulations). The surcharge is applied in the event of a delay unless a plausible excuse is provided.

Example: If the 2024 tax return is submitted in August 2025 without an extension, the tax office may impose a surcharge. In the case of an excusable delay, such as illness, the surcharge may be waived.

Note: The tax office must consider factors such as the amount of the payment or previous delays. An objection is possible if the discretion of the tax office seems inappropriate.

Legally prescribed late fees

After a deadline has passed, the late fee is automatically due: it amounts to 0.25% of the assessed tax per month late, at least 25 Euro. In the case of tax refunds or 0 Euro assessments, the surcharge may be waived (§ 152 para. 3 AO).

Court rulings

In a case before the Münster Finance Court, a late fee was imposed even though a tax refund was due. The court ruled that the tax office must exercise its discretion properly and consider all relevant factors, such as the refund situation. The ruling became final (Ref. 4 K 2351/23).

Recommendations for action

If it is foreseeable that the tax return cannot be submitted on time, an application for an extension should be made early. If a surcharge is imposed despite a plausible excuse, an objection can be lodged.