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14.7. Appeal Procedures

If a taxpayer disagrees with an assessment, they may lodge an appeal with the tax authorities within 1 month of receiving the assessment notice. Resident taxpayers are assumed to have received the notice 3 days after it was sent by the tax authorities, and non-residents are assumed to have received the notice 1 month after it was sent.

If the taxpayer disagrees with the decision of the tax authority, they may file an appeal with the tax court of the first instance. The appeal must be made within 1 month of receiving the decision of the tax authorities.

If necessary, final appeals may be made to the Federal Tax Court. Decisions of the Federal tax court may only be appealed on constitutional grounds with the Federal Constitutional Court.

During the appeals process, payment of the tax in dispute may be deferred. However, if the assessment stands, the interest of 0.15% per month (reduced from 0.5% per month) will be applied to the tax due. The reduced rate applies retroactively from 1 January 2019. On 22 July 2022, the German Ministry of Finance (BMF) issued guidance letters in connection with the change in interest rate (see Sec. 14.6).