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Advance Tax Payment

An advance payment toward the expected tax.

Anyone who earns income without tax being withheld, such as the self-employed, makes quarterly advance payments toward the expected income tax. The tax office sets these based on the last assessment. If income falls, a reduction can be requested.

The relevant statutes

§ 37 EStG

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Related terms

General explanation for self-help, not legal advice (RDG). Individual cases may differ: if in doubt, contact a consumer advice center or a lawyer.