Information letter Increase of advance payments

You have reduced your (income, corporate or trade) tax prepayment due to the Corona crisis and the resulting economic difficulties.

The information letter was generated automatically. Increases in advance payments could only be taken into account up to a certain point in time. If you have already increased your prepayments, consider the letter as irrelevant

This can be seen in the information letter.

If an adjustment of the 4th advance payment is desired, a re-registration must be made by 18.09.2020. In case of a re-registration after 18.09.2020, an adjustment can no longer be made for system-related reasons. An adjustment is then only possible for 2021.

A reply form is attached to the information letter. Fill it out with the required information and send it to your local tax office.

The sum of the four advance payments for a calendar year should be approximately as high as the tax that is expected to result for the calendar year. The last tax assessment notice can serve as a reference point. The tax assessment shows the amount of income for the year in question and how much tax was due on it. The income expected for 2020 or 2021 can be compared with this income and thus an estimate of the annual tax can be made.

If it is not possible to estimate the annual tax in this way, the amount of the expected profit for the year 2020 or 2021 can alternatively be indicated in the return form. This must then be marked accordingly in the return form.

Advance payments can only be determined in accordance with the provisions of the Income Tax Act if they total € 400 (sum of the four quarterly payments). Therefore, an amount of at least € 400 must be stated as the anticipated annual tax in the return form.

If advance payments have already been made for 2020, the amount already paid will be deducted from the annual tax indicated by the taxpayer in the return and only the difference will be set as the 4th advance payment.

If you do not wish to adjust the advance payments, you do not need to do anything further. If you do not respond to the information letter, the advance payments set to date will not change.