I am going to get a refund on 5 August. The due date for my real estate tax is 6 August. Will the Tax Administration apply my refund on the real estate tax automatically?
No. Make sure to pay the real estate tax by its due date, to avoid late-payment interest.
Read more about real estate tax payments.
If the due date passed and your real estate tax is still unpaid
Your tax refunds are only applied on an unpaid amount of real estate tax if the tax has fallen due before the end date of your tax assessment process. How do I know when my tax assessment is completed?
In general, your refund can only be used on real estate tax during a period starting on your assessment end date and ending the 4th day of the following month.
Example: Karen forgot the first instalment of real estate tax. The due date for paying it was 6 August. Karen’s unpaid tax starts collecting late-payment interest on the next day.
The date when the Tax Administration completes Karen’s income tax assessment is a few days later, but also in August.
Karen's tax decision indicates that she gets a refund. The date of the refund is 3 October. However, after Karen’s end date of tax assessment passes, the Tax Administration will automatically use the refundable amount in order to cover the unpaid real estate tax and its late-payment interest in August.
As a result, on her tax refund date 3 October, she will only receive a remaining amount, i.e. what is left of her refund when the unpaid tax and late-payment interest are subtracted.
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