General information – types of securities, deadlines, other market specifics – Germany (CBL)
Types of securities
The eligible securities issued in Germany are as follows:
Debt securities not subject to capital income tax
- Government debt securities (including coupon strips and principal strips of strippable government bonds as detailed in the Creation Link Guide - Germany);
- Agency bonds;
- Foreign bonds;
- Communal bonds;
Debt securities subject to an effective tax rate of 26.375%, depending on their character in each case
- Convertible bonds (Wandelschuldverschreibungen);
- Jouissance shares: profit participating rights that do not entitle the owner to liquidation proceeds (Genußscheine ohne Anteil an Liquidationserlös);
- Bonds conveying an interest in profits of the issuer (Gewinnobligationen).
Bearer equities and Registered Shares, subject to an effective rate of capital income tax of 26.375%
German funds certified according to InvStG
No capital income tax (Kapitalertragsteuer; KESt) and solidarity surcharge (Solidaritätszuschlag; SolZ) are deducted for fund distributions of German funds, if evidence is provided that the fund is an investment fund pursuant to § 1 of the German Investment Tax Act (Investmentsteuergesetz; InvStG) or a special investment fund pursuant to § 53 InvStG.
German funds not certified and subject to an effective tax rate of 26.375% on taxable elements
Note: If no tax base (Bemessungsgrundlagen) parts are delivered, the income amount is taken as the tax base.
The tax calculation on German growth (accumulation) funds is done on the following tax bases (Bemessungsgrundlagen), if the fund does not fulfill the above-mentioned requirements:
Cash distribution:
- Domestic Dividend Part (inländischer Dividendenanteil);
- REIT-Part (REIT-Anteil);
- Estate Part (Immobilienanteil).
Accumulation (Thesaurierung):
- Domestic Dividend Part (inländischer Dividendenanteil);
- Foreign Dividend Part (ausländischer Dividendenanteil);
- Interest Part (Zinsanteil);
- REIT-Part (REIT-Anteil);
- Estate Part (Immobilienanteil).
For German growth (accumulation) funds, distributions of tax liquidity are not processed by Clearstream Banking.
Beneficial owners recognised for tax purposes in Germany
The following types of beneficial owner of German securities are recognised for tax purposes in Germany:
- Residents of a Double Taxation Treaty (DTT) country.
- Residents of Germany.
Natural persons who have neither their residence nor their usual abode in Germany and legal entities, partnerships and assets that are neither managed nor domiciled in Germany have limited tax liability if they generate income in Germany within the meaning of §49 of the Income Tax Law (Einkommensteuergesetz; EStG).
Note: There are no domestic exemptions specifically available for foreign governments or supranational organisations. The conditions of the relevant DTT apply as appropriate.
Residents of a Double Taxation Treaty (DTT) country
A standard refund is available from the federal central tax office (“BZSt”) if the beneficial owner qualifies for the benefit of a reduced rate of capital income tax in accordance with a Double Taxation Treaty (DTT) between its country of residence and Germany.
The tax rate prescribed in the DTT may differ depending on the status of the beneficial owner and its country of residence. Please refer to the relevant DTT or consult your tax advisor for further information.
A reclaim of capital income tax is currently not available through Clearstream Banking.
Relief at source, quick refund and standard refund of capital income tax on income from German securities are currently not available through Clearstream Banking.
The service offered for certified investment funds is described in chapter “German Investment Tax Act (InvStG)”.
Residents of Germany
Residents of Germany cannot reclaim capital income tax through Clearstream Banking.
Beneficial Owners who deposit their assets with Clearstream Banking, via Clearstream Banking S.A. or via a non-German depository bank, can request German Tax Vouchers via their depository bank.
Statutory deadline for reclaiming capital income tax
Applications for refund of capital income tax in accordance with section 50c (3) / section 44a (9) of the Income Tax act must be submitted within a period of four years after the end of the calendar year in which the capital income or remuneration was accrued.
§11 (2) Investment Tax Act stipulates a differing deadline for certified investment funds. The application for a given fiscal year of the investment fund must be submitted to the BZSt within two years of the end of that fiscal year.
Notes on taxation
Clients warrant the completeness and accuracy of the information they supply to Clearstream Banking or to the tax authorities.
With respect to tax reclaims in general, clients are reminded that Clearstream Banking accepts no responsibility for their acceptance or non-acceptance by the tax authorities of the respective country.