What happens if I do not pay my corporation tax on time?
January 18, 2023 | 50,00 EUR | answered by Mia Köhler
Dear tax advisor,
my name is Sandra Büchner and I run a small GmbH. Over the past few months, we have experienced some financial difficulties and were unable to pay the corporation tax on time. Now I am worried about the consequences this could have for my company.
Currently, the situation is that the deadline for the corporation tax payment has already passed and we are unable to raise the money at the moment. I fear that we could run into trouble due to my late payment. What measures could be taken against us and how can we avoid them?
Are there any options to apply for a deferral of the corporation tax or can we arrange installment payments? How will a late payment affect our company and how can we best resolve the situation to avoid any further problems?
Thank you in advance for your help and support.
Best regards,
Sandra Büchner
Dear Mrs. Büchner,
Thank you for your inquiry regarding the delayed payment of corporate tax for your GmbH. It is understandable that you are concerned about the potential consequences this could have for your company. I would like to provide you with some information and tips on how best to handle this situation.
First and foremost, it is important to know that a delayed payment of corporate tax can have various consequences. If the deadline for payment has already passed, the tax office may impose default interest and possibly even late payment penalties. These additional costs can further burden the financial situation of your company. Additionally, there may be restrictions on your tax options, as the tax office could react more strictly to repeated payment delays.
To resolve the situation and avoid further problems, I recommend that you promptly contact the tax office. You can request a deferral of the corporate tax to obtain more time for payment. To do so, you must convincingly demonstrate to the tax office that your company is experiencing temporary financial difficulties and cannot make the payment on time. Alternatively, you can also arrange installment payments to gradually pay off the tax debt in small installments.
It is important that you proactively approach the tax office and seek a solution for the outstanding corporate tax. By communicating transparently and cooperating, you can gain the trust of the tax office and resolve the situation effectively. If you ignore the outstanding tax demand or fail to respond promptly, you risk further problems and restrictions for your company.
Finally, I would recommend seeking professional assistance to better manage the tax affairs of your GmbH. An experienced tax advisor can assist you in communicating with the tax office and help improve the financial situation of your company.
I hope this information was helpful to you. If you have any further questions or need assistance, please feel free to contact me.
Kind regards,
Mia Köhler, Tax Advisor
