All corporations that intend to make profit distributions must submit the standard query for the church tax deduction feature (Kirchensteuerabzugsmerkmal, KiStAM) to the Federal Central Tax Office (Bundeszentralamt für Steuern, BZSt) between 1 September 2016 and 31 October 2016.
The query determines whether the company's shareholders are subject to church tax as of the reference date 31 August 2016. This information is required because church affiliation governs the withholding and remittance of church tax on capital gains tax in the following year.
In a press release dated 1 September 2016, the Deutscher Steuerberaterverein (DStV) reports that it has been advocating procedural simplifications since this rule was introduced (this year marks the third query since the new rule took effect). The DStV also reports that its persistence has paid off.
According to the information provided, a state decree (Ländererlass) is expected shortly that will include numerous exemptions and simplifications. Among other things, it is intended to provide that corporations with only a single non-denominational shareholder (so-called "one-person GmbHs") will no longer be required to carry out the retrieval procedure. Corporations that do not intend to make profit distributions can likewise dispense with the procedure.
Source: DStV, press release dated 1 September 2016
Frequently asked questions
Frequently asked questions
When must the KiStAM standard query be carried out?
The standard query for the church tax deduction feature (Kirchensteuerabzugsmerkmal, KiStAM) must be submitted annually between 1 September and 31 October to the Federal Central Tax Office (Bundeszentralamt für Steuern, BZSt). The reference date for the shareholders' church tax liability is 31 August of the respective year. The query is a prerequisite for the correct withholding and remittance of church tax on capital gains tax in the following year.
Which corporations are required to perform the KiStAM query?
In principle, all corporations planning to distribute profits to their shareholders must conduct the regular query. The query determines whether the shareholders are subject to church tax, so that church tax on capital gains tax can be properly withheld. If no distribution is planned, there is no obligation to query.
What relief is available for one-person GmbHs regarding the KiStAM query?
According to an announced decree of the federal states, corporations with only one non-denominational shareholder (so-called one-person GmbHs) no longer have to carry out the retrieval procedure. This eliminates the bureaucratic burden of the annual standard query for these companies.
Does a corporation without planned profit distributions have to carry out the KiStAM query?
No, corporations that do not intend to distribute profits can skip the KiStAM retrieval procedure. Since no investment income is paid out, no capital gains tax — and therefore no church tax on it — is incurred.
What is the purpose of the church tax deduction identifier (KiStAM)?
The KiStAM informs the distributing corporation of the religious affiliation of its shareholders. Based on this information, church tax is withheld and remitted together with the capital gains tax. This implements the automated procedure for deducting church tax on investment income.