Tax Deferral for Hardship: Who Qualifies and What You Get
Learn how businesses facing temporary cash flow issues can delay tax payments without facing interest penalties.
This scheme allows businesses facing temporary cash flow struggles to delay their tax payments until a later date.
Who it's for
This is designed for businesses that are experiencing temporary liquidity issues, meaning you are having difficulty meeting your immediate cash needs.
What you get
If approved, you can receive an extension on your tax payment deadlines. This allows you to delay making your payments without being charged interest penalties for the delay.
What it costs you
While there is no direct fee to apply, you must provide detailed proof of your financial distress. You will need to submit documentation that clearly demonstrates why your business is currently facing a shortage of available funds.
The catch to know
The tax office is very strict when reviewing these requests. You cannot simply ask for more time; you must prove that your financial hardship is a temporary problem rather than a permanent state of business insolvency.
How to apply
- Gather detailed financial documents that prove your current liquidity situation.
- Prepare a formal request, sometimes referred to as a "Stundungsantrag."
- Submit your evidence and request to the tax office.
- Wait for a formal decision regarding your extension.