Interest income tax replaced by withholding tax

What you need:

• Annex KAP income tax return

With the final withholding tax or interest income tax, as it was previously called, the income tax on income from capital assets is settled. Basically, you need your income from capital assets, of which the Banks automatically withhold the final withholding tax, no longer state the income tax in your income tax return brokerage.

Interest income tax is now called the final withholding tax

• The withholding tax rate is a uniform 25% of your interest income.
• To do this, you have to add the solidarity surcharge of 5.5% based on the flat tax and the church tax, so that you get a total tax rate of 28%.
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• This interest income tax, which has recently been called the flat tax, applies to all interest income from financial investments at banks Investment income from securities, mutual funds, futures, life insurance, dividends and distributions.
• Furthermore, sales of shares, Holdings in corporations (if the stake is less than one percent) or the sale of securities in private assets. Your income is tax-relevant even after the previous speculation period of one year has expired.


Exemption order issued too high? - this is how you can proceed

The tax authorities are not to be trifled with. Especially when it comes to withholding ...

Note the saver lump sum

• You can no longer claim income-related expenses. The only tax-reducing effect is the savings lump sum of € 801 if you are single and € 1,602 if you are married.
• The banks automatically withhold the withholding tax from this interest income and transfer it to the Tax office away. Your tax burden is now settled.
• However, you must or should file the KAP annex on your income tax return when you do your interest charges have not paid tax (because they were incurred at a foreign bank, for example), or despite your church tax liability at the same time as the Withholding tax amount no church tax has been paid, or you would like to have the withholding tax amount checked as such and submit an application Make a cheaper check.

You have to declare foreign interest income separately

• If you do not state foreign interest income, you will be liable to prosecution. Get legal advice about a voluntary disclosure and avoid being held criminally responsible.
• Submitting the KAP annex is particularly useful for you if your bank has not yet issued an exemption order and the bank has paid the final withholding tax, although you are not subject to tax as a result of the saver lump sum are.