Income Tax Set-Off with Allowance Debts

Allowance debts such as rent allowance are automatically set off against your income tax refund. The Tax Authorities withhold assessments for outstanding claims. This applies to all allowances via a single portal. You will receive notification prior to set-off, with the right to object. In case of multiple debts, the oldest ones take priority. Prevent this by paying on time or making an arrangement. For low incomes: minimum set-off with exemption amount. Combine with WSNP for debt restructuring. Tax treaty prevents double set-off in case of foreign involvement. Annually €500 million is set off. Tips: check your assessment notice and allowances overview. Apply for priority in case of acute need. The Excessive Borrowing Act limits risks. Legal test: proportionality principle. This way, the tax authorities enforce payment without direct attachment.