Inquiry concerning the required delivery time.
In Germany, the deadline for filing tax returns is fast approaching, with individuals required to submit their 2024 returns by July 31, 2025. However, it's essential to understand who falls under the mandatory filing category and who has the option to file voluntarily.
Generally, individuals are required to file a tax return if their income exceeds the basic allowance or if they have specific types of income such as capital gains, rental income, or other income not subject to withholding tax. The tax-free basic allowance has increased to €12,096 as of January 1, 2025.
For those who choose to file voluntarily, this can be beneficial if they expect a refund or need to claim deductions or credits, particularly for those with work-related expenses or other deductible items.
Individuals who file their own tax returns have approximately a month less time compared to last year, with the deadline set for July 31, 2025. On the other hand, those who use a tax advisor have an extended deadline until March 1, 2026.
It's important to note that not everyone is required to file a tax return. There is an exception for those who need to file: if they hire a tax advisor, they have an extended deadline until April 30, 2026.
In addition, small businesses in Germany will no longer need to file an annual VAT return starting in 2025. However, fees for tax advisors are set to rise in July 2025, affecting those who use these services.
The modernisation of tax law in Germany distinguishes between two groups: those who must file a tax return and those who can do so voluntarily. Understanding these distinctions is crucial for ensuring compliance and maximising potential refunds or deductions.
Moreover, it's essential to be aware of the penalties for missing the deadline. Failure to submit a tax return by the deadline may result in penalty charges, so it's advisable to plan ahead and file as early as possible to avoid any potential fines.
In summary, the deadline for the 2024 tax return submission in Germany is July 31, 2025, for individuals who file themselves. Those who use a tax advisor have an extended deadline until March 1, 2026. Voluntary filing can be advantageous for various reasons, but it's crucial to understand the rules and deadlines to ensure compliance and maximise potential benefits.
Personal finance plays a significant role in understanding tax filing requirements in Germany. If an individual's income exceeds the basic allowance or they have specific types of income such as capital gains, rental income, or other income not subject to withholding tax, they are required to file a tax return. On the other hand, those with work-related expenses or other deductible items may benefit from filing voluntarily to claim deductions or credits.
