Offsetting and reimbursement of deductions for construction work Unfortunately this specification of service has not yet been completely translated.

If a tax deduction amount has been declared and withheld on your invoice by a recipient of a construction work you have performed, this will be deducted from your taxes payable. The following taxes are offset one after the other: The income tax withheld and declared in accordance with § 41a paragraph 1 of the Income Tax Act (EStG), the advance payments on income tax or corporation tax, the income tax or corporation tax of the tax or assessment period during which the service was provided, and the deductions for construction work to be declared and paid by you within the meaning of §§ 48, 48a EStG The credit is made by the tax office, an application for this is not required. A credit can be rejected if the recipient of your construction work as a deduction obligation to pay the deduction amount, but has not paid it and there is reason to believe that there is an abuse. If you are not obliged to submit income tax declarations and an assessment for income tax or corporation tax is not an option or if you can credibly demonstrate that there will be no tax claims to be secured during the assessment period, you can apply for the refund of the deductions from the tax office. The application is form-bound and is made using an officially prescribed model form. This can be accessed via the Form Management System (FMS) of the Federal Finance Administration. The application is time-bound. It may be made until the end of the second calendar year following the year in which the deduction was declared. If the provisions of an agreement on the avoidance of double taxation apply and a longer period is specified therein, this longer period applies. The tax office will examine the application and, if the aforementioned conditions are met, will reimburse you for the deductions paid for your invoice

Crediting: - none Refund: - Application for official model form - if possible, settlement notification by the person obliged to deduct (recipient of the construction work)


Application for reimbursement of deductions (§ 48c paragraph 2 EStG) Available via the form management system of the Federal Finance Administration under Tax Forms\Income Tax\Construction Deduction Tax Application for reimbursement of deductions (§ 48c paragraph 2 EStG)

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Preconditions
Tax deductions for construction work performed domestically have been withheld on your account, the deductions are not offset against other taxes and You submit an application for reimbursement of the deductions withheld within the statutory period using the official form model and fulfil the conditions attached to a refund
§ 48c Income Tax Act (EStG)

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Unless the withheld tax deductions are credited, you can request a refund of the amounts withheld on your invoice. The application shall be submitted using an officially prescribed model form. The sample application can be found under the following link: Application for reimbursement of deductions (§ 48c paragraph 2 EStG) Further information is provided by the Federal Central Tax Office under the following link. Further information of the BZSt

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If a tax deduction amount has been declared and withheld for your invoice by a recipient of a construction work performed by you, this will be offset against your taxes payable. You do not have to do anything for this credit. If a set-off cannot be made, you can apply to the tax office for the refund of the deduction amounts if you are not obliged to submit income tax declarations and an assessment for income tax or corporation tax is not an option or if you can credibly demonstrate that no tax claims to be secured will arise during the assessment period. The application is formal and is made using an officially prescribed model form. The sample form is available via the Form Management System (FMS) of the Federal Finance Administration. The application is time-bound. It may be made until the end of the second calendar year following the year in which the deduction was declared. If the provisions of an agreement on the avoidance of double taxation apply and a longer period is specified therein, this longer period shall apply. The tax office will examine the application and, if all the conditions are met, will reimburse you for the deductions paid for your invoice.

Responsible for the content
Thuringian Ministry of Finance

Last update or date of publication
01.10.2020