Tax return: Submit "Annex KAP" retrospectively

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With the KAP annex you declare your capital income as part of your income tax return. If you submit your tax return retrospectively, you have withheld your income so far and can expect criminal action. To avoid this, you need to understand the principles of self-disclosure.

Your tax office will find out everything.
Your tax office will find out everything. © Gerd Altmann_Shapes_AllSilhouettes.com / Pixelio

What you need:

  • Annex CHAP

Have your money invested and withdraw Investment income, you have to pay tax on them. The tax authorities demand 25% withholding tax plus solidarity surcharge and, if applicable, church tax. If you have earned investment income on which no final withholding tax has yet been paid, you are well advised to prepare your tax return retrospectively and to attach the KAP to Tax office to submit.

Prepare your tax return retrospectively only with advice

  • First of all: You are familiar with the discussion about the problem of undeclared investment income, especially if you have invested your capital abroad. Since you want to prepare your tax return retrospectively, it must be assumed that you have investment income on which you have not yet paid any withholding tax.
  • This means that you are possibly in the criminal area and should take the opportunity to report yourself. Since this topic is very complex and you as a tax layperson have to reckon with many sources of error, you should definitely seek legal advice.
  • If you achieve capital income in Germany, the withholding tax is automatically withheld by the bank and transferred to your tax office. You then do not need to submit the KAP annex to the tax office.

Investment KAP for foreign interest income

  • However, if you have achieved foreign investment income and have not yet declared this to the tax office, you must take action and submit the KAP annex.
    • Income from capital assets - information for the tax return

    You must submit income from capital assets in your income tax return to ...

  • You will then be exempt from punishment in accordance with Section 371 I of the Tax Code if you correct, add to, or make up for omitted information after this tax evasion. The tax authorities then waive their claim to punishment.
  • You are still liable for the taxes evaded. The fixing period is extended. You have to pay evasion interest.
  • With your declaration of correction, your tax office must be able to fully clarify the facts without lengthy inquiries and to determine the tax correctly.

Impunity only upon payment

  • You will only gain impunity if you pay the evaded taxes within a reasonable period of time.
  • It is also not enough for you to declare parts of your hidden investment income. If it turns out later that you have withheld further investment income, you risk revoking your impunity.
  • Overall, you must note that a voluntary disclosure must be prepared financially.

Get back withholding tax that has been paid too much

  • The other case in which you can create your tax returns retrospectively using the KAP appendix is ​​that you have paid too much withholding tax.
  • This can be the case if you have not used your exemption request and your bank has paid more withholding tax than it should have paid. In this case, you can apply for a refund of the final withholding tax that you paid too much.

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