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:

  1. The withheld and declared income tax,
  2. the advance payments on income tax or corporation tax,
  3. the income tax or corporation tax for the tax or assessment period in which the service was provided, and
  4. 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.

Source: Zuständigkeitsfinder Thüringen (Linie6PLus)

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