What tax obligations do I have as a capital investor?
April 5, 2023 | 40,00 EUR | answered by Robert Kockel
Dear tax consultant,
My name is Renata Weiss and I have been dealing with the topic of capital investment for some time now. In recent years, I have expanded my portfolio and now want to ensure that I fulfill all tax obligations as a capital investor.
Currently, I have various securities, such as stocks and bonds, in my portfolio. I also have some savings products like savings accounts and fixed-term deposits. I have heard that there are different tax regulations for capital investors and I want to make sure that I do not evade taxes or incorrectly declare them.
My biggest concern is that I may overlook tax obligations and get into trouble as a result. Therefore, I would like to know from you what specific tax obligations I have as a capital investor. Are there specific tax returns that I need to fill out? Do I need to report certain gains or losses in my tax return? Are there any special considerations for the taxation of dividends or interest?
I would greatly appreciate your assistance in fulfilling my tax obligations as a capital investor correctly and avoiding potential tax risks. Thank you in advance for your help.
Sincerely,
Renata Weiss
Dear Mrs. Weiss,
Thank you for your question regarding tax obligations as a capital investor. It is very important to inform yourself about the applicable tax regulations in the field of capital investment in order to avoid potential tax risks. I would be happy to help you and provide you with an overview of the relevant tax obligations.
As a capital investor, you are generally required to report your capital gains in your annual tax return. Capital gains include, for example, interest from savings products such as savings accounts and fixed-term deposits, dividends from stocks, and profits from the sale of securities. These gains must be reported in the "Anlage KAP" of your tax return.
There are different regulations for the taxation of capital gains, depending on the type of income. For example, interest and dividends are subject to withholding tax at a rate of 25%, which is withheld directly by the bank. If you realize profits from the sale of securities, these fall under the regulations of income tax. It is important to note that profits from securities sales may be tax-free under certain circumstances if you have held the securities for more than a year.
In addition, there are also tax-free allowances that you as a capital investor can claim. These include, for example, the saver's lump sum of 801 euros for singles or 1,602 euros for married couples, under which capital gains remain tax-free. If your capital gains exceed this amount, you must report them in your tax return.
In addition to the mentioned tax obligations, you should also make sure to keep all relevant documents such as portfolio statements, purchase and sale receipts, as well as interest and dividend statements. These serve as proof for your declarations in the tax return and should be available in the event of a tax audit.
I hope this information helps you and gives you an overview of your tax obligations as a capital investor. If you have any further questions or need assistance with preparing your tax return, I am happy to help.
Best regards,
Robert Kockel
