Service Finder
Offsetting and reimbursement of deductions for construction work
Service Description
If a tax deduction amount has been declared and withheld for your invoice by a recipient of a construction service provided by you, this will be offset against your taxes payable.
The following taxes are credited one after the other:
- The withheld and declared income tax,
- the advance payments on income tax or corporation tax,
- the income tax or corporation tax for the tax or assessment period in which the service was provided, and
- the deductions to be declared and paid by you for construction work.
Offsetting is carried out by the tax office; no application is required.
Offsetting can be refused if the recipient of your construction work, as the party obliged to deduct, has declared the deduction amount but has not paid it and there is reason to assume that there is abuse.
If you are not obliged to submit income tax returns and an assessment for income tax or corporation tax is out of the question or you can credibly demonstrate that there will be no tax claims to be secured in the assessment period, you can apply to the tax office for a refund of the deduction amounts.
Process flow
If a tax deduction amount has been declared and withheld for your invoice by a recipient of a construction service provided by you, this will be offset against your taxes to be paid. You do not have to do anything for this credit.
If a credit cannot be made, you can apply to the tax office for a refund of the withholding amounts if you are not obliged to submit income tax returns and an assessment for income tax or corporation tax is not possible or you can credibly demonstrate that there will be no tax claims to be secured in the assessment period.
The application must be made in writing using an officially prescribed model form.
The sample form can be downloaded from the Federal Tax Administration's forms management system (FMS).
The tax office will check the application and refund the deduction amounts paid for your invoice if all requirements are met.
Who should I contact?
You can find the tax office responsible for you via the tax office search of the Federal Central Tax Office:
Competent authority
The tax office responsible for you or the corporation is responsible for offsetting withheld tax deductions for construction services.
You can find the relevant tax office using the tax office search function of the Federal Central Tax Office.
Requirements
- Tax deductions have been withheld for construction services rendered in Germany for your invoice,
- the withholding amounts are not offset against other taxes and
- You submit an application for a refund of the withheld deductions within the statutory period using the official standard form and meet the conditions associated with a refund.
Which documents are required?
- Crediting: none
- Reimbursement:
- Application on official sample form
- If possible, statement of account from the party obliged to deduct (recipient of the construction work)
What are the fees?
There are no costs.
What deadlines do I have to pay attention to?
The application period ends at the end of the second calendar year following the year of the tax declaration. The deadline may be extended in exceptional cases if this results from an agreement to avoid double taxation. The date of receipt by the competent tax office is decisive.
Appeal
Application for reimbursement of deductions (Section 48c (2) EStG)
Retrievable via the Federal Tax Administration's form management system under Tax forms\Income tax\Construction deduction tax
Author
The text was automatically translated based on the German content.
Technically approved by
Thuringian Ministry of Finance
Professionally released on
07.12.2023
Source: Zuständigkeitsfinder Thüringen (Linie6Plus)
No competent authority found
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