Do I have to declare my foreign capital gains in the tax return?
January 25, 2023 | 45,00 EUR | answered by Anna Karpinski
Dear tax advisor,
my name is Gerald Winterstein and I am currently working on my tax return. I have received some capital gains from abroad and I am wondering if I need to declare them in my tax return. I am unsure because I am not sure about the regulations that apply in this case.
Regarding the situation: Last year, I received various capital gains from abroad, including interest from a savings account and dividends from stocks. These amounts were directly transferred to me by the foreign banks. I have already declared my domestic income in the tax return, but I am unsure if I also need to declare the foreign capital gains.
My concerns are that I do not want to violate the tax law and do not want to face any unpleasant consequences. I want to ensure that I provide all the necessary information correctly and completely to avoid any issues with the tax authorities.
Therefore, my question to you as an expert: Do I need to declare my foreign capital gains in the tax return? If yes, what information and documents do I need for this? Are there any specific regulations or forms that I need to fill out? I would be very grateful if you could assist me with this to complete my tax return correctly.
Thank you in advance for your support.
Sincerely,
Gerald Winterstein
Dear Mr. Winterstein,
Thank you for your question regarding the disclosure of foreign capital gains in your tax return. It is important to accurately report all income earned abroad to avoid potential tax consequences.
In general, foreign capital gains must also be reported in your tax return. This includes interest from a savings account as well as dividends from stocks received abroad. The foreign capital gains must be reported in attachment KAP of your tax return, where you must specify the type of capital gain, the amount, and the source of the income.
To report foreign capital gains, you will usually need certificates or evidence from foreign banks that paid you the gains. These documents are important to support the information in your tax return and address any questions from the tax office.
You may also need to fill out form ESt 1 AUS in addition to your tax return to detail foreign income. This form is used to accurately declare income earned abroad and avoid potential double taxation.
It is advisable to seek assistance from a tax advisor when reporting your foreign capital gains to ensure all necessary information is reported correctly. A professional tax advisor can help you avoid mistakes and complete your tax return properly.
I hope this information is helpful and answers your question. If you need further assistance or have more questions, please feel free to contact me.
Best regards,
Anna Karpinski
