Due to the Investment Tax Reform of 2018, ETFs are subject to taxation on the advanced tax (formerly deemed distributed income). This is a tax based on the growth of ETF investments and is required to be applied by all trading platforms where you can buy or sell ETFs. The tax is calculated on the base interest rate set by the German Ministry of Finance at 2.55%. The increase in value and the dividends distributed by your ETFs are also taken into account.
Example:
ETF - Redemption price at the beginning of the year: 1000 EUR
Base rate: *2,55%
Factor: *0.7 (determined by the Federal Ministry of Finance)
= base yield 17.85 EUR
A partial exemption of 30% (for equity fund with more than 50% equity component) is now deducted from the base yield, resulting in an advance lump sum of 12.50 EUR.
Finally standard taxation, including capital gains tax, solidarity surcharge, and, if applicable, church tax, is calculated: EUR 12.50 * 26.375% = EUR 3.30
Thus, if the value of your ETF unit has risen from €1000 to €1250 and no dividends were distributed during the year, the tax would amount to around €4.
We automatically take into account the advance tax and taxes due so that you do not have to do anything else. Your exemption order (Freistellungsauftrag) or loss offsetting pot (Verlustverrechnungstöpfe) will be offset against the advance tax. If you have provided us with a valid non-assessment certificate (Nichtveranlagungsbescheinigung), it will be considered.
If your remaining exemption order (Freistellungsauftrag) or loss offsets (Verlustverrechnungstöpfe) is not sufficient to cover the advance tax, it will be deducted from your cash account from the first quarter of 2024. Please ensure that your account has sufficient funds. You will receive a tax statement in your profile. An advance notification of the specific amount is not possible.
If your cash account is not sufficiently covered, you will be notified by us and given 2 weeks to balance your account.
Finally, please note that the advance tax is calculated separately for each asset. You will therefore find a corresponding document for each tax calculation in your activity overview.