Notes on the declaration of assessment for the new property tax
The introduction of the new property tax has created a lot of excitement on the part of property owners in recent months. While many questions are still open, it is clear that in the future every owner will have to submit a declaration of assessment. But what exactly is meant by this and which steps have to be taken into account in the process?
In this article we will provide you with the most important information regarding the declaration of assessment for the new property tax. We will go over both the legal basics and practical tips so that you, as a property owner, are well prepared.
It is important to know that the declaration of assessment plays a central role in the calculation of the new property tax. Only on the basis of this declaration can the tax office determine the value of your land and the buildings on it, and thus determine the amount of the tax. Therefore, you should be extremely careful when submitting the declaration and fill in all relevant information completely and correctly.
New real estate tax – tips for the declaration of assessment
The new property tax is a reform of the old property tax system, which has been criticized for lack of objectivity and timeliness. The new property tax is based on a so-called “simplified capitalized earnings method”, which particularly focuses on the location and size of the property.
In order to determine the amount of property tax, owners must fill out a declaration of assessment and send it to the tax office. This statement should include detailed information about the property, including location, size, use, standard land value, and building information.
It is important that the assessment return is filled in properly, as incorrect or incomplete information can lead to an inaccurate tax calculation. It is also important to comply with the deadlines for submitting the declaration, otherwise late penalties may be incurred.
One way to make the declaration easier is to use online applications that can guide the owner through the process and automatically calculate all the required information. However, it is important to ensure that the calculated information is accurate and that the specified deadlines are met.
- Summary: The new property tax is a reform of the old system and is based on a simplified capitalized earnings method. Property owners must complete a declaratory statement to determine the amount of the tax. It is important to complete the declaration properly and to comply with the deadlines.
Who is required to file a declaration of assessment for the new property tax?
The assessment return for the new property tax affects owners of buildable land, whether individuals or businesses. Also usufructuaries and heritable building owners, who hold the right to use a property, are obliged to submit a declaration of assessment. In addition, those who have a tax liability under a lease or rental agreement where the property tax is paid by the tenant or lessee must also file a declaratory statement.
Special rules apply to landlords. If landlords pass on the property tax to tenants during the year, they are required to file a declaration of assessment. However, if the tenant pays directly to the city or municipality and the landlord does not pay property tax, a declaration of assessment is not required.
A declaratory statement is also required for building land that is held as reserve land without development, as this is buildable land. In the case of land that is jointly owned, all owners must jointly submit a declaration of assessment.
- In summary:
- All owners of buildable land
- Usufructuaries and heritable building owners
- Tenants or leaseholders with a tax liability
- Landlords who pass on the property tax to tenants
- Owners of building land as reserve land
- Joint owners of land plots that can be built on
Important deadlines for the declaration of assessment for the new property tax
The introduction of the new property tax affects all property owners in Germany. In order to calculate the amount of property tax from 2025, all owners must submit a declaration of determination. However, there are certain deadlines that must be met.
- The deadline for filing the assessment return begins on 1. January 2022 and ends on 31. March 2022.
- Those who miss the deadline face late filing penalties and possibly late payment penalties as well.
- It is possible to apply for an extension of the deadline. However, there must be a special reason for this, for example illness or vacation.
It is therefore important to take care of the submission of the assessment declaration for the new property tax in good time and, if necessary, to apply for an extension of the deadline. For those who miss the deadline must expect additional costs.
In order to fill out the declaration of assessment correctly, owners should seek the advice of a tax advisor or a specialist. In addition, all necessary documents should be carefully collected in order to avoid errors in the calculation of property tax.
When preparing the assessment declaration for the new real estate tax, there are some important aspects to consider. In this article, we will give you advice on what information must be included in the declarations of assessment.
Location and description of the property
The declaration of assessment must include information on the location and description of the property. This includes, among other things, the address, the area of the property and the type of use (e.g. residential area, commercial area).
Calculation of the property tax
An important task in the preparation of the assessment return is the calculation of the property tax. For this purpose, various factors must be taken into account, such as the size of the property, the type of use and the standard land value.
Preliminary assessment of the real estate tax
If the final values for calculating the property tax are not yet available, a provisional assessment can be requested. However, this must be updated within a certain period once the final values are available.
The assessment declaration for the new property tax requires a detailed examination and calculation of the individual factors. Anyone who is unsure about this should consult an expert in order to avoid errors and the associated additional payments.
How the new property tax is calculated?
The assessment declaration for the new property tax is an important matter for property owners in Germany. You must provide truthful and complete information about your property, as well as your personal data, in order to calculate the new property tax correctly.
The calculation of the new property tax is made up of various factors, such as the size of the property, the location and the current property value. The real estate values are determined by the appraisal committee and set in a real estate value determination law.
To determine the new property tax, the determined property values are multiplied by a tax assessment amount. There are two different tax assessment amounts: one for property tax A and one for property tax B. Property tax A is levied on developed land, property tax B is levied on unused land.
- Tax assessment amount property tax A: 0.06 percent
- Tax assessment amount for land tax B: 0.035 percent
The result of this multiplication is the annual tax amount that the real estate owner has to pay. It is important to closely examine the information in the assessment declaration for the new property tax and, if necessary, make corrections to avoid unnecessary tax expenditures.