The Steuerbescheid is a formal administrative act (Verwaltungsakt) issued by the German tax authorities (Finanzamt). This means the document has legal effect once it is issued. In most cases, the assessment becomes binding after one month, and changes are no longer possible after the objection period. This means even incorrect assessments may become final if no action is taken.
For this reason, it is important to review the Steuerbescheid carefully and quickly once it arrives. Many expats initially focus only on whether they need to pay additional tax or receive a refund. However, the document often contains other relevant information, such as adjustments made by the tax office, explanations of accepted or rejected deductions, and references to foreign income.
Understanding these elements can help avoid misunderstandings and prevent future issues with the Finanzamt.
Frequently Asked Questions About the Steuerbescheid
Below are some of the most common questions we get from expats who have received a German Steuerbescheid (tax assessment notice).
Verification Questions
What does my Steuerbescheid mean and do I owe tax or receive a refund?
Your tax assessment notice shows the German tax office’s final calculation of your income tax and indicates whether you must pay additional tax or will receive a refund.
How do I check if the tax amount and deductions on my Steuerbescheid are correct?
You can compare the numbers in the Steuerbescheid with your submitted tax declaration and review the “Erläuterungen” section, where the tax office explains any changes.
Where can I see my foreign income or double taxation credit in the Steuerbescheid?
Foreign income or tax credits usually appear in the tax calculation section of the tax assessment notice or are referenced in the explanatory notes.
Payment and Refunds
How do I pay the tax amount from my Steuerbescheid if I am living abroad?
We recommend maintaining a German or SEPA-based bank account. However, the Steuerbescheid includes the German tax office’s bank details so the tax due can be paid via international bank transfer.
Can I set up installment payments for a large tax bill shown in my Steuerbescheid?
In rare cases, taxpayers can request an installment plan or payment extension (Stundung) from the German tax office. Usually this is not possible, and a bank loan should be obtained instead.
Why hasn’t my refund from the German tax assessment notice been paid yet?
Refunds are usually transferred promptly to the bank account listed in your tax assessment notice. If you have not yet provided a bank account for refunds, contact the tax office.
Expat-Specific Issues
I noted that I have not reported my foreign income because I believed it should not be taxed in Germany. How can I fix this?
The German tax concept is based on the worldwide income principle. If foreign income was not reported in your German tax declaration, it is advisable to clarify the situation with the tax office.
I have not reported some of my investment income from a foreign bank account, what do I need to do?
Germany taxes your worldwide income, including investment income from foreign sources. Therefore, if you have not reported your foreign investment income, you should contact the tax office.
The tax office is demanding further information related to taxes paid on my foreign income, how do I react?
The tax office may request documentation such as foreign tax assessments or withholding tax statements to verify foreign income and tax credits.
Objection and Appeals
How do I file an Einspruch (objection) against my Steuerbescheid if I disagree?
An objection can usually be filed in writing with the German tax office by referencing the relevant Steuerbescheid.
What is the deadline to object to a Steuerbescheid, and what if I miss it?
The objection period is generally one month after receiving the Steuerbescheid, after which the assessment normally becomes final.
Do I need a Steuerberater to appeal my tax notice, or can I do it myself?
Taxpayers may file an objection themselves, but professional advice can be helpful in more complex tax situations.
Unsure How to React to Your Steuerbescheid and Running Out of Time?
We are often contacted by expatriates who receive a Steuerbescheid and feel that something may not be correct, but they are unsure how to proceed.
One practical approach in such situations is to file a preliminary objection. This can preserve your rights while giving you additional time to review the situation and seek professional advice.
If your concern ultimately turns out to be unfounded, the objection can generally be withdrawn without negative consequences. If you find that your concerns were justified, you can provide detailed reasons for the appeal later. In many cases, the tax office will contact the taxpayer after one month and request additional explanations and set a new deadline.
Prinz.tax Practical Tip: In our experience, you can effectively extend your appeal period of your German tax assessment notice (Steuerbescheid) from one month to three months by filing a preliminary objection without providing detailed reasoning. Below is a simple example of how such a preliminary objection may look:
Betreff: Einspruch gegen Steuerbescheid vom DD.MM.YYYY, Steuernummer 123/456/7890
Sehr geehrte Damen und Herren,
hiermit lege ich fristgerecht Einspruch gegen Ihren Steuerbescheid ein. Eine Begründung folgt.
Mit freundlichen Grüßen
Your Name
When submitting an objection, make sure to include the date of the letter, your address, your tax number, and the date of the tax assessment.
You Need Assistance with Your Tax Declaration in Germany?
For many expatriates, navigating German tax rules can feel complex, particularly when foreign income, international tax treaties, or cross-border investments are involved. Professional guidance can help ensure that your tax return and any correspondence with the tax office are handled correctly and efficiently.
If you would like support with your German tax declaration, our team at Prinz.tax Steuerberatung GmbH specializes in assisting expats with cross-border tax matters in Germany.
Request your personal offer or book your individual tax consultation today.
