The 2018 investment tax reform introduced the advance lump sum to put accumulating and distributing ETFs on an equal footing for tax purposes. It is a notional capital gain that accrues annually in January, serves as an advance tax payment, and ensures that reinvested income from accumulating funds is also taxed.
A notional profit is calculated for this purpose, on which tax is then levied, even if no actual payout has taken place. The prime rate set by the Deutsche Bundesbank is 2.29% for 2025 (previous year: 2.55%). The factor of 0.7 is specified by the Federal Ministry of Finance. The increase in value and the dividends distributed by your ETFs are also taken into account.
Formula for the advance lump sum
Advance lump sum = value of the ETF at the beginning of the previous year * prime rate * 0.7
Example calculation:
Assume the value of your ETF at the beginning of the year (2024) was €10,000. Then the following advance lump sum is calculated for you in January 2025:
Advance lump sum = €10,000 * 2.29% * 0.7 = €160.30
Following, tax is calculated including capital gains tax, solidarity tax and, if applicable, church tax.
If the ETF has an equity component of over 50%, the partial exemption applies. This means that 30% of the fund and, consequently, of the advance lump sum is not subject to tax.
- Calculation without partial exemption including capital gains tax, solidarity tax (church tax if applicable): € 160.30 * 26.375 % = € 42.28
- Calculation with partial exemption including capital gains tax, solidarity tax (church tax if applicable): (€ 160,30 - 30%) * 26,375 % = € 29,59
We will automatically take into account the advance lump sums and the due taxes, most likely between 13.01. and 17.01., so that you do not have to do anything else. Your other loss offset pot, or your exemption order for 2025, will be offset against the advance lump sum. If you have submitted a valid non-assessment certificate to us, this will also be taken into account.
If your remaining 2025 exemption order or other loss offset pot is not sufficient to cover the advance lump sum, tax will be deducted from your cash account in January 2025. Therefore, please ensure that your account has sufficient funds by then. If your account does not have sufficient funds, we will inform you, and you will then have two weeks to clear your account. Also note that you will receive a tax statement/invoice in your profile.
Finally, please note that the advance lump sum is calculated separately for each item. You will, therefore, find a corresponding document for each tax calculation in your activity overview.