Verspätungszuschlag
The late-filing surcharge on a German tax return.
A Verspätungszuschlag is a surcharge for filing after the deadline. For an annual return such as the income-tax return, §152 Abs. 5 AO sets it at 0.25 % of the assessed tax for each started month of delay, with a minimum of €25 per month, and a cap of €25,000. Up to 14 months after the end of the tax year the Finanzamt has discretion; after that, the surcharge is mandatory, with exceptions such as an assessment of zero tax or a refund. It is separate from Nachzahlungszinsen, which run on unpaid tax regardless of fault. For a non-resident, the practical risk is not the size of one surcharge but missing reminders sent to an outdated foreign address. If you will be late for a good reason, ask the Finanzamt for an extension before the deadline.
Last reviewed: by Yann Lephay.