How do I pay taxes on stocks
The tax on stock sales
Capital gains tax and withholding tax
The final withholding tax has been in effect since 01/01/2009. According to this, 25 percent tax, solidarity surcharge and, if applicable, church tax are to be paid on all investment income (e.g. on profits from a share sale).
This tax serves to simplify the capital gains tax. The tax is withheld by all banks in Germany and passed on to the tax office.
They only have to be stated in the income tax return in special cases, for example if the bank has not been informed about the religious affiliation.
Selling shares and Corona
The coronavirus currently has a heavy impact on the economic situation. The stock exchanges have collapsed and investors are toying with the idea of selling their shares as quickly as possible.
The coronavirus is causing growth prospects to collapse. However, investors should not make hasty decisions.
- The consumer association recommends that stock investors should not "sell too hectically". In particular, equity fund savings plans as a retirement provision are based on a long investment horizon. Fund savings plans as old-age provision should be continued according to the consumer advice center.
It still makes sense to spread your retirement provision across several asset classes. In addition, real estate and fixed-term deposits represent secure building blocks.
Holding period before the share sale
Before 2009, there was a rule that stock gains from stocks held for over a year would be tax-free. This concession no longer applies with the final withholding tax.
However, there is one important exception: it still applies to shares bought before January 1, 2009.
Saver lump sum for tax on investment income
Private people who invest their money only in small amounts often do not have to pay any capital gains tax at all, because every taxpayer has a tax exemption, which is called the saver lump sum.
This amounts to 801 euros per person and for a married couple with joint accounts for both together to 1602 euros.
However, the tax-free allowance is not automatically set up by the bank for the taxpayer. An application must be submitted to the bank, which results in profits from a sale of shares or other capital gains. The total of the tax-free allowance must be split.
Pay as little tax as possible on a share sale
People with very low incomes, such as children, are not subject to income tax and therefore do not have to pay any capital gains tax at all.
For this purpose, a non-assessment certificate should be applied for, which means that no taxes are withheld by the bank.
Furthermore, of course, the tax only has to be deducted from investment income. This also means that losses on the sale of shares can be offset against profits.
Overpaid taxes can be reclaimed in the income tax return.
Individual references and sources
Federal Ministry of Consumer Protection and Justice: Separate tax rate for income from capital assets, §32d, Income Tax Act (EStG) »
Consumer center NRW e.V .: Corona consequences on the stock exchange: Don't sell shares hectically »
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