How closely will Germany's Finanzamt look at your tax return?
The deadline for many self-filers passed at the end of July. Here’s what taxpayers can expect now, from automated checks to possible requests for more information.
The Finanzamt, Germany's tax office, utilizes an automated Risk Management System to process tax returns. This system evaluates submitted information against data from various sources, such as employers, pension providers, and insurance companies. Approximately two to five percent of tax returns are selected for manual examination due to potential risks.
Common triggers for closer scrutiny include significant changes in reported expenses, the appearance of new deduction categories, and first-time claims like rental income or home-office allowances. Property-related claims, including rental income and renovation costs, are also of interest to the tax office. Online platforms like Airbnb and eBay now provide data to the tax office, which flags discrepancies between reported information and actual data.
Cryptocurrency gains, investment income, and losses are other areas under increased review. Taxpayers can expect a tax assessment notice six to eight weeks after filing, which outlines the calculated liability and any necessary payments. If discrepancies arise, taxpayers may receive requests for additional documentation or clarifications.
Disagreements with the tax office's decision can be contested within one month of receiving the assessment notice.
Written by urgent.news from The Local Germany's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
