Generally speaking each fund registered for distribution in Germany will seek to obtain “tax transparent status” according to the German Investment Tax Act (InvTA). The list of tax figures that will be made available is given below. The share classes for which figures will be produced are generally:
The tax figures that will be made available are as follows:
Daily figures
Annual figures
The daily tax figures will be published on www.fundinfo.com, whereas the certified annual figures will be published on www.bundesanzeiger.de
Each Capital Group Luxembourg Fund will have to calculate and publish a final reporting based on the old rules as at 31 December 2017. This reporting is mandatory and independent of the financial year end of the fund. The reporting will have to be filed before 31 December 2018, although Capital Group Luxembourg Funds intend to publish and file the information by 30 April 2018 using the same publication media as in previous years. From the perspective of the German tax authorities, investors will be deemed to realize a sale of all their shares on 31 December 2017. This will be considered as a taxable event; however, the notional capital gain or loss will not be taxed immediately. The tax will be payable in the event of a later redemption of fund shares.
Pursuant to the new German Investment Tax Act (InvTA), effective 1 January 2018, Germany introduced a new investment fund tax regime which impacts the way investments in funds are taxed.
According to the new regulations, for German taxable investors, distributions, realized capital gains on redemptions and annual lump sum amounts are subject to tax. The tax due on the annual lump sum amounts is a prepayment which will be deducted from the taxable realized capital gains at the time of redemption. As a consequence of the new regime, the daily and annual tax figures calculated under the old regime stop as at 31 December 2017.
Investors can generally benefit from a partial tax exemption based on the category of investor they are and the assets held by the fund in which they invest.
The funds will therefore be categorized according to different classifications as defined by the new regulations:
The tax exemption rates which are applicable upon distribution, redemption and the lump sum annual amounts vary as follows:
Fund Classification |
Minimum Equity Threshold |
Private Investor |
Business Investor (Individual or Partnership) |
Business Investor (Corporation) |
|---|---|---|---|---|
| Equity fund (“Aktienfonds”) |
51% | 30% | 60% | 80% |
| Mixed fund (“Mischfonds”) |
25% | 15% | 30% | 40% |
| Other fund (“Sonstiger”) |
N/A | 0% | 0% | 0% |
| Real Estate fund (“Immobilienfonds”) German Real Estate |
51% | 60% | 60% | 60% |
| Real Estate fund (“Immobilienfonds”) Non-German Real Estate |
51% | 80% | 80% | 80% |
Preliminary Lump Sum
Pursuant to the new German Investment Tax Act (InvTA), an annual preliminary lump sum taxation (known as “Vorabpauschale”) is due commencing January 2019. The preliminary lump sum has to be determined in Euro.
The preliminary lump sum is calculated by multiplying the Net Asset Value (NAV) per share at the beginning of the calendar year by 70% of the interest rate for risk-free investments which is published annually by the German Federal Ministry of Finance. The lump sum is limited to the increase in NAV per share in the calendar year. No lump sum is applied in the case of a decrease in the NAV per share. Distributions are always taxable.
Share classes in currencies other than Euro must be converted to Euro based on the reference exchange rates of the European Central Bank on the corresponding date.
Investors can generally benefit from a partial tax exemption based on the type of investor they are and the type of assets held by the fund in which they invest.
The tax figures may be found by clicking on the relevant link below:
In case shares were acquired during the calendar year, the preliminary lump sum should be reduced by one twelfth for every full month, which precedes the month of acquisition.
For investors who hold shares with a German depository bank, the bank will calculate and withhold the tax due from the preliminary lump sum. For investors who hold shares by other means, the preliminary lump sum should be included in their tax return.
Each fund classification may be found by clicking on the relevant link below:
In order to further assist clients with their investment, certain funds will calculate and report a daily equity ratio to WM Daten.
Further information on the new InvTA can be found on the official government website.
The information contained on this page does not constitute investment or tax advice and does not purport to deal with all of the tax consequences applicable to the funds or to all categories of investors, some of whom may be subject to special rules. Shareholders and potential investors are advised to consult their professional advisors concerning possible taxation or other consequences of purchasing, holding, selling, converting or otherwise disposing of the Shares under the laws of their country of incorporation, establishment, residence, or domicile, and in the light of their particular circumstances.