Equities – rates, eligibility, availability of relief etc. – Germany
Capital income tax
| Standard tax rate: | 26.375% | Trading restriction: | Yes |
The effective standard tax rate on dividends from German equities comprises a standard rate of 25% capital income tax (Kapitalertragsteuer; KESt) plus a solidarity surcharge (Solidaritätszuschlag; SolZ) of 5.5% of the standard rate.
Availability of relief
| Eligible beneficial owners | Relief at Source | Quick Refund | Standard Refund |
Residents of Double Taxation Treaty countries | No | No | Yes |
Residents of Germany | No | No | No |
Dividends paid to a certified investment fund pursuant to § 1 of the German Investment Tax Act (Investmentsteuergesetz; InvStG) | No | No | Yes |
Note: LuxCSD cannot consider a retroactive correction of the character of an income distribution. LuxCSD cannot make any correction regarding the taxability of tax-free payments based on KStG § 27 when changing to a taxable income payment based on EStG § 20,1 or vice versa. This is a matter between the issuer and its local tax office.
Relief at source
Relief at source is not available through LuxCSD.
Standard refund
A standard refund is available from the federal central tax office (“BZSt”) if the beneficial owner qualifies for the benefit of a reduced tax rate in accordance with a Double Taxation Treaty (DTT) between its country of residence and Germany.
A reclaim of capital income tax is available through LuxCSD.