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Applying to adjust German advance tax instalments

German advance tax instalments are measured AS A RULE against the tax assessed for the LAST assessment period (§ 37(3) sentence 2 EStG) — that is, against a past year that need have nothing to do with the current one. If profits collapse, you keep paying on the old result until somebody changes it. § 37(3) sentence 3 EStG lets the tax office adjust the instalments to the tax EXPECTED for the assessment period, up to the end of the 15th calendar month following that period. For corporation tax the same applies through § 31(1) sentence 1 KStG. For trade tax, however, the adjustment is NOT the tax office's to make but the MUNICIPALITY's (§ 19(3) sentence 1 GewStG) — the tax office can only fix the assessment amount, by which the municipality is then bound (§ 19(3) sentences 3 and 4 GewStG).

Up to date for 2026 — verified on September 22, 2026Official procedure, no printed formGuide: about 20 min

This content is part of the path: Determining profit as a self-employed person· Step 11 of 11· Last step of the path

Deadlines

Income tax instalments: 10 March, 10 June, 10 September and 10 December
§ 37(1) sentence 1 EStG
Trade tax instalments: 15 February, 15 May, 15 August and 15 November
§ 19(1) sentence 1 GewStG — four different dates from income tax, each on the 15th of the month before the income tax date
Adjustment window: to the end of the 15th calendar month following the assessment period
§ 37(3) sentence 3 EStG; 23 months where income from agriculture and forestry is expected to exceed other income. For trade tax the window likewise ends with the 15th following month (§ 19(3) sentence 2 GewStG)
After a subsequent increase: one month
The increase is payable within one month of service of the instalment notice (§ 37(4) sentence 2 EStG)

Documents to prepare

  • ELSTER access with a certificate or an ELSTER business account
  • The instalment notice in force, with tax number and assessment period
  • The assessment the instalments were measured against
  • An estimate of the tax expected for the current assessment period
  • Evidence for that estimate: management accounts, order book, customers lost
  • Tax deductions already credited
  • For trade tax: the address of the municipality entitled to levy it
See the procedure on the official site

No form is attached to this procedure: the link leads to the official page that describes it.

What this page gives you

The guide above and the link to the official site. ActioFin does not produce any document for this page: whatever you fill in or file is done on the official medium.

Who this applies to

  • Anyone holding an instalment notice whose current year is running markedly worse than the assessment the instalments were measured against (§ 37(3) sentence 2 EStG)
  • Anyone expecting a jump in profits who would rather not let the final bill build up: the adjustment runs both ways, since § 37(3) sentence 3 EStG speaks of the expected tax, not only of a reduction
  • Companies: § 31(1) sentence 1 KStG applies the Income Tax Act provisions correspondingly, and § 31(2) KStG deals with a financial year differing from the calendar year
  • Traders — but for trade tax the municipality is the competent body (§ 19(3) sentence 1 GewStG); all that runs through the tax office is the assessment amount for instalment purposes (§ 19(3) sentence 3 GewStG)
  • Not concerned: anyone with no instalments assessed at all, since they are only assessed where they come to at least 400 euros in the calendar year and at least 100 euros for a single instalment date (§ 37(5) sentence 1 EStG)

Worked example

Katrin Lohmann, a sole trader in exhibition stand construction, loses half her turnover in 2026

Her income tax instalments for 2026 were measured against the 2024 assessment (§ 37(3) sentence 2 EStG) and come to 2 000 euros per date, so 8 000 euros for the year, due on 10 March, 10 June, 10 September and 10 December (§ 37(1) sentence 1 EStG). By May 2026 it is clear that her profit is collapsing and that her income tax for 2026 will probably be around 3 000 euros. She applies to have the instalments adjusted to the tax expected for the assessment period; the tax office may do so up to the end of the 15th calendar month following 2026, that is, to the end of March 2028 (§ 37(3) sentence 3 EStG). If it reduces the instalments to 750 euros per date, the three dates still open — June, September and December — fall from 2 000 to 750 euros each: 3 × 1 250 = 3 750 euros that stay in the business this year, with no deferral application and no interest. Two things need keeping apart. First, trade tax: those instalments are adjusted not by the tax office but by the MUNICIPALITY (§ 19(3) sentence 1 GewStG); the tax office can fix the expected assessment amount for that purpose, and the municipality is bound by it (§ 19(3) sentences 3 and 4 GewStG). Second, the dates: trade tax falls due as early as 15 February, 15 May, 15 August and 15 November (§ 19(1) sentence 1 GewStG), not on the 10th of the following months.

How to fill it in, step by step

  1. Take out your instalment notice and establish which assessment the amounts were measured against (§ 37(3) sentence 2 EStG).
  2. Estimate the tax expected for the CURRENT assessment period — that is the yardstick § 37(3) sentence 3 EStG names, not turnover and not last year's profit.
  3. Support the estimate with figures: management accounts, order book, customers lost, tax deductions already remitted.
  4. Log in to Mein ELSTER and select the application to adjust advance instalments (Antrag auf Anpassung von Vorauszahlungen).
  5. State the type of tax, the assessment period and the new amount applied for per instalment date.
  6. Check the de minimis thresholds before applying for an increase: instalments already assessed are only increased where the increase comes to at least 100 euros per instalment date, or at least 5 000 euros in the case of § 37(4) EStG (§ 37(5) sentence 2 EStG).
  7. For TRADE TAX, make a separate application to your municipality — it is the body that adjusts those instalments (§ 19(3) sentence 1 GewStG).
  8. After an increase, expect a short deadline: the increase is payable within one month of service of the notice (§ 37(4) sentence 2 EStG).

Good to know

  • The adjustment is cheaper than any alternative: it costs no interest, whereas a deferral bears interest under § 234 AO and lateness attracts a penalty under § 240 AO.
  • The adjustment window reaches a long way forward: to the end of the 15th calendar month following the assessment period, and 23 months where income from agriculture and forestry predominates (§ 37(3) sentence 3 EStG).
  • On a subsequent increase it is the LAST instalment of the assessment period that is adjusted (§ 37(4) sentence 1 EStG) — dates already past are left alone.
  • For corporation tax the Income Tax Act provisions apply correspondingly (§ 31(1) sentence 1 KStG). Where the financial year differs from the calendar year, the instalments are payable during the financial year ending within the assessment period (§ 31(2) KStG).
  • Each trade tax instalment is as a rule a quarter of the tax resulting from the last assessment (§ 19(2) GewStG); it is rounded down to the next whole euro and only assessed where it comes to at least 50 euros (§ 19(5) GewStG).
  • Where a business is newly founded during the collection period, the same adjustment rule applies to the FIRST assessment of instalments (§ 19(4) GewStG) — a new business does not necessarily start from zero.
  • Certain expenses are left out of account in measuring the instalments where they do not exceed 600 euros in total (§ 37(3) sentence 4 EStG). An instalment therefore never mirrors the later annual tax exactly.

Common mistakes

  • Reporting the drop in turnover instead of the expected TAX. § 37(3) sentence 3 EStG looks to the tax expected for the assessment period — a fall in turnover without a profit calculation will not carry the application.
  • Asking the tax office about trade tax and waiting for an answer. Those instalments are adjusted by the MUNICIPALITY (§ 19(3) sentence 1 GewStG); the tax office can only fix the assessment amount, by which the municipality is bound (§ 19(3) sentences 3 and 4 GewStG).
  • Confusing the two sets of dates. Income tax: 10 March, 10 June, 10 September, 10 December (§ 37(1) sentence 1 EStG). Trade tax: 15 February, 15 May, 15 August, 15 November (§ 19(1) sentence 1 GewStG).
  • Applying for a small increase. Instalments already assessed are only increased where the increase comes to at least 100 euros per instalment date, or at least 5 000 euros in the case of § 37(4) EStG (§ 37(5) sentence 2 EStG).
  • Overlooking the payment date after an increase: it is payable within ONE MONTH of service of the notice (§ 37(4) sentence 2 EStG).
  • Reaching for a deferral before adjusting the instalments. The adjustment lowers the debt; a deferral merely moves it and charges interest on it.
  • Assuming a reduction works backwards on dates already due. For a subsequent INCREASE, § 37(4) sentence 1 EStG expressly names the last instalment as the lever.

Frequently asked questions

What are my instalments measured against in the first place?

As a rule against the income tax resulting, after crediting tax deductions, from the LAST assessment (§ 37(3) sentence 2 EStG). That is why they lag behind the current year.

How long can they be adjusted?

The tax office may adjust the instalments up to the end of the 15th calendar month following the assessment period; that period extends to 23 months where income from agriculture and forestry is expected to exceed other income at the first assessment (§ 37(3) sentence 3 EStG).

Does this cover trade tax too?

Not through the same application. The municipality may adjust the instalments to the tax expected for the collection period (§ 19(3) sentence 1 GewStG). For trade tax instalment purposes the tax office may fix the expected assessment amount, and the municipality is bound by that (§ 19(3) sentences 3 and 4 GewStG).

And corporation tax?

Yes. The Income Tax Act provisions apply correspondingly to the conduct of taxation, save where the Corporation Tax Act provides otherwise (§ 31(1) sentence 1 KStG). Where the financial year differs from the calendar year, instalments are payable during the financial year ending within the assessment period (§ 31(2) KStG).

From what amount are instalments assessed at all?

Only where they come to at least 400 euros in the calendar year and at least 100 euros for a single instalment date (§ 37(5) sentence 1 EStG). For trade tax, an instalment is only assessed where it comes to at least 50 euros (§ 19(5) sentence 2 GewStG).

What happens if the tax office increases them later?

The last instalment for the assessment period is adjusted, and the increase is payable within one month of service of the instalment notice (§ 37(4) EStG).

Go further

Compute the related amounts

Understand this form: the related course

Related forms

Official sources

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Guide and document provided for information purposes only; they do not constitute personalised legal or tax advice. Check the recipient organisation's requirements and consult a professional if needed.