When do I have to pay taxes on my capital gains?
May 26, 2024 | 40,00 EUR | answered by Paula Köhler
Dear tax advisor,
My name is Verena Schaaf and I am currently dealing with my capital gains. I have some securities and regularly save money in my savings account. Lately, I have started to think about when I have to pay taxes on these capital gains.
So far, I have not delved deeply into the topic and I am unsure if I already have to pay taxes or if there is a tax exemption that I can adhere to. I want to be on the safe side and not evade taxes, but also not unnecessarily transfer money to the tax office.
My biggest concern is that I may have to pay back taxes because I have done something wrong. Therefore, I would like to know when I have to pay taxes on my capital gains and how best to proceed to avoid possible tax repayments.
Could you please explain to me what regulations exist regarding when taxes on capital gains become due and if there are ways to minimize this tax burden? I want to ensure that I am handling everything correctly and legally and appreciate your expert advice.
Thank you in advance for your help.
Sincerely,
Verena Schaaf
Dear Mrs. Schaaf,
Thank you for your inquiry regarding the taxation of capital gains. It is good that you are addressing this issue early to avoid possible tax payments and to properly manage your tax affairs.
In general, capital gains such as interest, dividends, and capital gains are subject to income tax. There are various regulations depending on the type of capital gains and your personal situation.
Firstly, there is an annual saver's allowance of €801 (€1,602 for married couples) up to which capital gains are tax-free. If your capital gains are below this amount, you do not have to pay taxes on them. However, please note that this allowance applies to all capital gains, including interest from savings accounts.
Once your capital gains exceed the saver's allowance, they are generally subject to taxation. You will then have to file a tax return and declare your capital gains in the KAP attachment. The tax will be calculated based on your personal tax rate.
To avoid possible tax payments, it is important to keep an eye on your capital gains and, if necessary, make a tax prepayment in advance. You should also carefully keep all relevant documents and consider consulting a tax advisor to properly manage your tax affairs.
There are also ways to minimize the tax burden on capital gains, such as using exemption orders for your securities accounts or crediting foreign capital gains withholding taxes.
Overall, it is important to address the issue of capital gains and taxes early and comprehensively to avoid possible tax payments and to properly manage your tax affairs.
I hope this information has been helpful to you. If you have any further questions, please do not hesitate to contact me.
Best regards,
Paula Köhler, Tax Advisor
