Investment Appendix
June 5, 2011 | 20,00 EUR | answered by Michael Herrmann
Hello, my spouse and I earned capital gains from savings deposits and investment funds in 2010. The exemption amount of 1602 EUR was not fully utilized, but due to a wrongly allocated distribution to individual institutions, tax was deducted in one case.
A fund company indicated in their tax certificate that I received income from the accumulation of foreign investment funds, which are not subject to the automatic procedure of flat rate withholding tax, but are taxable. If the total income exceeds the tax-free allowance for savers, additional tax is required. The total capital gains must be declared in the tax return.
I am now unsure whether I need to submit form KAP or not. If I do, would I also need to request tax certificates from the banks? Thank you for a brief response.
Dear inquirer,
First of all, thank you very much for your inquiry, which I would like to answer based on the information provided and in the context of your commitment to an initial consultation. The response will be in accordance with the description of the situation. Missing or incorrect information about the actual circumstances can influence the legal outcome.
The income from the foreign investment fund must be declared in the tax return for additional taxation, as it has not yet been covered by the withholding tax. In order to obtain an accurate taxation, it is necessary to declare all capital gains. In the simplest case, you will receive back the withheld capital gains tax, as you have not fully utilized the savings allowance.
Banks will only provide you with a tax certificate if tax has been withheld. In other cases, you will receive an income statement. Your income should be fully documented.
I hope that these details have provided you with a sufficient overview of the situation within the scope of your commitment and this initial consultation.
Yours sincerely,
Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax advisor
