Why Do Not Occur in The Capital Income Tax Return
Capital gains are not recorded as most other income on the tax return, but will be retained by the debtor and transferred to the treasury. Here, the income will be taxed at 25%, but also solidarity surcharge and church tax may need to be considered. Since you can not make this claim-related expenses, a saver’s allowance is granted in the amount of 801 €.
The debtor conducts the tax, not the creditor
Capital gains tax is a special form of income tax, which will be taxed on certain income from savings and investments. The tax arises at the time in which the income to the creditors (depositors, investors, …) flow. The debtor (corporations, banks, building societies, …) has a duty to withhold capital gains tax and the tax office to transfer. I.e. the removal of this tax is not for the taxpayers themselves, but of the debtor of capital gains. Thus, the investment income taxed not once again be included in the income tax return.
The total burden of capital income is higher than 25%
With the Corporate Tax Reform Act of 2008 was on 01.01.2009 adopted the flat tax for personal investment income, which means that all capital income – no matter of the nature of the items of income (interest, dividend, price increases) – a tax rate (according to § 43a para 1 ITA) be taxed by 25% – the so-called flat tax.
This withholding tax will be an additional 5.5% surcharge and any other 8% or 9% church tax (each based on the flat tax) is calculated. Thus we arrive at a total charge in the amount of 26.375% (excluding church tax).
Instead of advertising costs, there are the saver’s allowance
Important to know that the tax burden on capital income can not be mitigated by various business expenses for income tax as is the case. Instead of the advertising costs occur in the capital income saver’s allowance. The saver’s allowance can be taken from 2009 of 801 € in stock and will be deducted from taxable capital income. However, this must be sought from the bank. It can also be distributed to several banks, which exceed the sum of the allowance of 801 € must not. Application of the forgotten, the lump sum, or spread across several banks are not optimal, it may be corrected directly on the tax return and be discharged the tax office. The tax paid by the bank receives the taxpayer then returned by the bank.