Burden on earnings due to increased energy prices: Examination of an adjustment to advance tax payments

February 20, 2023

If, for example, earnings are currently expected to decline due to higher energy prices or other raw material prices, or if sales are expected to fall due to a decline in consumer spending, it should be examined whether it is appropriate to adjust the advance tax payments. The reduction of advance tax payments should always be examined, as this is a simple and effective instrument for conserving liquidity. Currently, an adjustment of the advance tax payments is still possible within the following framework:

• For the year 2021, a (subsequent) adjustment of advance payments is still possible until 30.9.2023. This should be used if a tax refund is expected to result after preliminary determination, as the adjustment of advance payments has a much faster liquidity effect than the assessment by the tax office.
• The adjustment of advance payments for the year 2022 is possible until 31.8.2024 and can already be applied for now by submitting a current BWA and a projection of the expected annual result.
• The advance payments for 2023 must also be taken into account. These are generally based on the most recent tax assessment, i.e. a year more or less in the past. If a usable plan for 2023 is available, an adjustment of the advance payments can be checked on this basis and applied for if necessary.

Note: The tax authorities have announced that applications to adjust advance payments for income tax and trade tax will be processed quickly and generously by the tax offices due to the current economic conditions.