Market Taxation Guide – Germany (CBL)

13.02.2025

This Market Taxation Guide (Germany) provides the following details:

  • Reference information about taxes applied at source, through Clearstream Banking1 and its local depositories, to securities deposited in Clearstream Banking and
  • Instructions for obtaining relief at source or a refund of capital income tax, where these are available, through Clearstream Banking.

Additional and improved tax information and procedures that are available will be included on an ongoing basis.
 

Important note:

This Market Taxation Guide (including any attachments and other links) is for informational purposes only and is not intended and should not be considered to be legal advice on any subject matter. Readers of this Market Taxation Guide, whether clients or otherwise, should not act or refrain from acting on the basis of any information included in this Market Taxation Guide without seeking appropriate legal or other professional advice.

Capital Income Tax

There is an effective tax rate of 26.375%, which comprises a standard rate of 25% capital income tax (Kapitalertragsteuer; KESt) plus a solidarity surcharge (Solidaritätszuschlag; SolZ) of 5.5% of the standard rate.

Debt securitiesTrading
restriction?
Capital income tax rateRelief at
source
Quick
refund
Standard
refund

Yes

0% / 26.375%

Residents of Double Taxation Treaty (DTT) countries

No

No

Yes

Residents of Germany

No

No

No

Coupon payments subject to German capital income tax paid to a certified investment fund pursuant to § 1 of the German Investment Tax Act (Investmentsteuergesetz; InvStG)a

No

No

Yes

EquitiesTrading restriction?Capital income tax rateRelief at
source
Quick
refund
Standard
refund

Yes

0%  / 26.375%

Residents of Double Taxation Treaty (DTT) countries

No

No

Yes

Residents of Germany

No

No

No

Coupon payments subject to German capital income tax paid to a certified investment fund pursuant to § 1 of the German Investment Tax Act (Investmentsteuergesetz; InvStG)a

No

No

Yes

a. Clients holding German taxable securities in their omnibus accounts on behalf of an investment fund that is subject to full company tax rate (“unbeschränkt körperschaftsteuerpflichtig”) in Germany, can request a reduced tax rate of 15%. (KESt incl. SolZ) on relevant income payments by providing the status certificate and tax reduction breakdown within 18 months following the taxable income event (§7(5) InvStG). CBF will refund the overpaid tax for those beneficial owners (11.375%).

German fundsTrading
restriction?
Capital income tax rateRelief at
source
Quick
refund
Standard
refund

Yes

0% / 26.375%b

Residents of Double Taxation Treaty (DTT) countries

No

No

Yes

Residents of Germany

No

No

No

b. From 1 January 2018, KESt and SolZ are not deducted by Clearstream Banking for fund distributions of German funds, if evidence is provided that the fund is an investment fund pursuant to § 1 InvStG or a special investment fund pursuant to § 53 InvStG. For funds not certified accordingly, the current tax deduction logic is applied; if no taxation base parts are delivered, the income amount is taken as the taxation base.

Note: All clients of Clearstream Banking S.A. and clients of Clearstream Banking AG with "6-series" accounts on the Creation platform are considered as foreign residents for tax purposes in Germany.

Capital gains tax

No capital gains tax is withheld through Clearstream Banking on securities held in Clearstream Banking. Capital gains tax may however be payable on specific gains. Clearstream Banking does not assist in this regard. Please consult your tax advisor for further information.

Stamp duty

No stamp duty is withheld through Clearstream Banking on securities held in Clearstream Banking. Stamp duty may however be payable on specific transactions. Clearstream Banking does not assist in this regard. Please consult your tax advisor for further information.

Trading restriction

The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA D) of the U.S. Inland Revenue Service makes it unlawful for the issuer of the affected securities or the sales partners of such issuer to sell those securities, within 40 calendar days of issue, to a U.S. citizen or to any persons who have spent more than 183 days in the U.S.A. (thus qualifying as U.S. residents for tax purposes).

--------

1. “Clearstream Banking” refers collectively to Clearstream Banking S.A. and Clearstream Banking AG (for Clearstream Banking AG clients using Creation accounts).