- The current interest rate for the interest on tax claims and refunds of 1.8% p.a. may soon be changed.
- The Federal Constitutional Court declared the previous interest rate of 6% p.a. unconstitutional.
- The interest rate was lowered to 1.8% p.a. with effect from January 1, 2019.
- The interest rate will be reviewed every two years, with the next review scheduled for January 1, 2024.
- The interest rate is based on the development of the base interest rate determined by the Deutsche Bundesbank.
- The base interest rate has recently increased significantly and is expected to be around 3% on January 1, 2024.
- The government may consider increasing the interest rate to address current financing gaps.
- The link between the interest rate and the capital market is justified but can be problematic due to the volatility of capital market interest rates.
- The impact of a fluctuating interest rate is limited for companies with minor deviations in tax assessments.
- The tax authorities may face difficulties in implementing the new interest rate in automated tax assessments.
- Other interest rates, such as evasion and suspension interest rates, remain unchanged at 6% p.a.
- The compatibility of interest on value-added tax with EU law is still being observed.
- There may be a need for a legal clarification regarding the interest on value-added tax.
Source: umsatz-steuer-beratung.de
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
