When does tax evasion become time-barred?
Under criminal law, tax evasion (Steuerhinterziehung) in its basic form becomes time-barred after five years, and in particularly serious cases after fifteen years. For tax purposes, the assessment period (Festsetzungsfrist) is ten years. These are two different periods that run for different lengths of time and start at different points — a case can be time-barred under criminal law and still open for tax purposes. And if you never filed a return, the tax period only starts after a delay.
Legal position as of: 9 September 2026
The periods at a glance: which period applies to which type of case and when it starts to run.
| Type of case | Criminal law | Tax law | Start |
|---|---|---|---|
| Standard case without understatement of tax | — | 4 years | End of the year in which the tax arose, deferred commencement under Section 170 AO |
| Reckless understatement of tax (Section 378 AO) | Administrative offence | 5 years | as above |
| Tax evasion, basic offence | 5 years Section 78(3) no. 4 StGB | 10 years Section 169(2) AO | under criminal law on completion of the offence, for tax purposes under Section 170 AO |
| Particularly serious case (Section 370(3) sentence 2 nos. 1–6 AO) | 15 years Section 376(1) AO | 10 years Section 169(2) AO | absolute limit: two and a half times the period from Section 78a StGB (Section 376(3) AO) |
Two periods that are often confused
The most common misconception on this topic is: “After ten years, it’s all over.” We come across it in almost every initial consultation on tax criminal law. It mixes up two periods that are neither the same length nor serve the same purpose.
The limitation of criminal prosecution (Verfolgungsverjährung) answers the question of whether a penalty may still be imposed. The limitation of assessment (Festsetzungsverjährung) answers the question of whether the tax may still be assessed. The two run independently of each other. A case can be time-barred under criminal law and still open for tax purposes — no penalty can then be imposed any more, but the tax must still be paid, together with interest.
Limitation of criminal prosecution
For the basic offence, a period of five years applies. It follows from Section 78(3) no. 4 of the German Criminal Code (StGB), which provides for five years for offences punishable by a maximum term of imprisonment of more than one year and up to five years — and Section 370(1) of the German Fiscal Code (AO) provides for exactly up to five years.
For the particularly serious cases under Section 370(3) sentence 2 nos. 1 to 6 AO, Section 376(1) AO extends the period to fifteen years. This provision applies in the version of the Annual Tax Act 2020 (Jahressteuergesetz 2020, BGBl. I p. 3096), last amended on 29 December 2020.
Limitation of assessment for tax purposes
Section 169(2) AO grades the assessment period (Festsetzungsfrist) according to fault: four years as a rule, five years for reckless understatement of tax (leichtfertige Steuerverkürzung), ten years for tax evasion. As long as this period is running, the tax can be assessed or an assessment amended.
This period is the reason why an amended declaration (Nacherklärung) still costs money even when nothing is at stake under criminal law any more — and why the question “how far back can the tax office review” cannot be answered with the criminal law period.
When the period starts to run
In practice, the start matters more than the length — and it is the point at which most rough calculations go wrong.
Under Section 170(1) AO, the assessment period begins at the end of the calendar year in which the tax arose. If, however, there is an obligation to file a tax return, a tax self-assessment or a notification, Section 170(2) no. 1 AO applies: the period then only begins at the end of the calendar year in which the return is filed — but no later than at the end of the third calendar year following the year in which the tax arose.
This deferred commencement (Anlaufhemmung) hits hardest precisely those who never filed a return. For them, the ten-year period only starts three years after the tax year — the open period therefore reaches back thirteen years.
Worked example
An investor makes taxable crypto gains in 2015 and does not file an income tax return for that year.
The tax arises at the end of 2015. Because there was an obligation to file a return and no return was filed, the deferred commencement under Section 170(2) no. 1 AO applies: the assessment period begins no later than at the end of the third calendar year after the tax arose, i.e. at the end of 2018.
In cases of tax evasion, the assessment period is ten years (Section 169(2) sentence 2 AO). It therefore runs until the end of 2028 — thirteen years after the tax year.
If you never filed a return, the period that is open for tax purposes will in practice reach back considerably further than the ten years you would expect.
What interrupts or suspends the limitation period
An interruption resets the period to zero: it then starts to run afresh. A suspension merely pauses it. Both can mean that a case can still be prosecuted years later, even though the nominal period would long since have expired.
For tax criminal law, Section 376(2) AO expressly clarifies that the limitation period is also interrupted by notification of the initiation of administrative fine proceedings — not only by the initiation of criminal proceedings.
So that this does not go on indefinitely, Section 376(3) AO sets an absolute limit for the particularly serious cases: two and a half times the statutory limitation period, calculated from its commencement under Section 78a StGB. Once this limit has been reached, that is the end of it, regardless of how often the period was interrupted.
In practice, this means: if you estimate a period yourself, you will almost always calculate too short. The acts that interrupt the period lie within the authority’s sphere and are not visible from the outside — you often only learn of them once proceedings are already under way.
Particularly serious cases: the longer period
If one of the cases listed in Section 370(3) sentence 2 nos. 1 to 6 AO applies, Section 376(1) AO extends the limitation of criminal prosecution from five to fifteen years. That is three times the period — and the reason why classifying a case as particularly serious has effects well beyond the range of penalties.
The six statutory examples (Regelbeispiele) set out in the law are listed on our page on tax evasion under Section 370 AO. For the statutory example “on a large scale” (in großem Ausmaß) we deliberately do not state an amount: the law does not set one, and its interpretation is a matter for the courts.
For a voluntary disclosure (Selbstanzeige), the longer period has a direct consequence: the correction period depends on the offences that are not yet time-barred. If the criminal limitation period reaches back fifteen years, the voluntary disclosure must reach back correspondingly far — the ten calendar years in Section 371 AO are only the lower limit.
Limitation period and voluntary disclosure
The correction period of a voluntary disclosure and the limitation periods are not the same thing — and the difference decides whether the disclosure is effective.
Section 371 AO requires information on all tax offences relating to one type of tax that are not yet time-barred, but at least on all tax offences relating to that type of tax within the last ten calendar years. If you treat the ten years as a fixed limit and stop there, you risk an incomplete disclosure — and with it the complete loss of exemption from punishment, not just for the missing years.
Conversely: a voluntary disclosure neither extends nor shortens any limitation period. If the requirements of Section 371 AO are met, it removes criminal liability, but it does not change how far the tax assessment period reaches. The tax to be paid is measured by this period, not by the criminal law one.
Requirements, exclusion grounds and the procedure are described in detail on our page on voluntary disclosure to the tax office.
Limitation periods for crypto gains
The same periods apply to crypto assets as to all other income. What makes these cases special is the typical pattern: many investors traded for years without filing a return — and so the deferred commencement under Section 170(2) no. 1 AO regularly applies, pushing the open period back by up to three years.
On top of that comes a practical problem that has nothing to do with the law: the further back the open period reaches, the harder it is to obtain the data. Trading platforms shut down, exports do not go back far enough, access is lost. Starting early gives you a greater advantage here than any calculation of time limits.
The time pressure has been real since the reporting obligation began: from the 2026 reporting period, trading platforms transmit transaction data automatically to the tax authorities — see DAC8. How an amended declaration works for crypto assets is explained under crypto voluntary disclosure.
Frequently asked questions on the limitation period
The questions we are asked most often about time limits for tax evasion.
When does tax evasion become time-barred?
Under criminal law, the basic offence of tax evasion becomes time-barred after five years (Section 78(3) no. 4 of the German Criminal Code (StGB) in conjunction with Section 370(1) of the German Fiscal Code (AO)). In the particularly serious cases under Section 370(3) sentence 2 nos. 1 to 6 AO, the period is fifteen years (Section 376(1) AO). For tax purposes, the assessment period in cases of tax evasion is ten years (Section 169(2) AO). The two periods run independently of each other.
How far back can the tax office review?
What matters is the tax assessment period: four years as a rule, five years for reckless understatement of tax, ten years for tax evasion (Section 169(2) AO). On top of that comes the deferred commencement (Anlaufhemmung) under Section 170(2) no. 1 AO: if no return was filed, the period only starts at the end of the third calendar year after the tax arose. In practice, the open period therefore reaches back considerably further than ten years.
Does tax evasion become time-barred after 10 years?
The ten years are the tax assessment period under Section 169(2) AO, not the criminal limitation period. Under criminal law, it is five years for the basic offence and fifteen years in the particularly serious cases under Section 376(1) AO. A case can be time-barred under criminal law and still open for tax purposes — no penalty can then be imposed any more, but the tax must still be assessed and paid.
What interrupts the limitation period?
For the limitation of criminal prosecution, Section 376(2) AO expressly also lists notification of the initiation of administrative fine proceedings as an act that interrupts the limitation period. After an interruption, the period starts to run afresh. For the particularly serious cases, Section 376(3) AO sets an absolute limit: two and a half times the statutory limitation period, calculated from its commencement under Section 78a StGB.
Does the limitation period still apply after a voluntary disclosure?
Yes, the periods continue to run regardless of a voluntary disclosure. The voluntary disclosure removes criminal liability if the requirements of Section 371 AO are met, but it neither extends nor shortens any limitation period. What matters in practice is the reverse: the correction period of the voluntary disclosure depends on the offences that are not yet time-barred — so the limitation period helps determine how far back the disclosure has to go.
How far back does a voluntary disclosure have to go?
It must contain information on all tax offences relating to one type of tax that are not yet time-barred, but at least on all tax offences relating to that type of tax within the last ten calendar years. “At least” is the decisive phrase: ten years are the lower limit. If the criminal limitation period reaches further back — for instance in particularly serious cases — the voluntary disclosure must also reach further back.
About the author
Maximilian Klein — Tax Advisor (Steuerberater) & Founder
Tax advisor (Steuerberater) specialising in amended declarations covering long periods and in distinguishing between tax and criminal law time limits.
Note: This page reflects the legal position as of 9 September 2026 and does not constitute advice on your individual case. Which period applies in a specific case, when it began and whether it has been interrupted depends on the specific circumstances and requires them to be reviewed.
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