Everything posted by evel79
evel79 posted a topic in FinanceI just received my Steuerbescheid, and on modest capital gains I have been charged tax of 31.7757% on the basis of Progressionsvorbehalt instead of the 25% Kapitalertragsteuer + 5.5% Solidaritätszuschlag (= 26.375%) fixed rate capital gains. I am not out of pocket because of decuctions applied that would not have been applied to capital gains, but I am confused as hell. I had already paid Kapitalseteuer, Solidaritätszuschlag, and a small amount of ausländische steuer on 2595€ of dividend income. This was declared on the Anlage KAP. Sparer Pauschbetreag for me is 801€. In addition there was 449€ of Auslänsdiche Kapitalerträge for which I had not paid any taxes yet. I expected a bill for 26.375% of this @ 118.42€ +/- any corrections made to my bank´s deducted at source capital gains taxes. Total capital gains is not disputed, neither is the 801€ Sparer Pauschbetrag. I don´t have other taxable income sources (EPO income), but oddly the Werbungskosten I had out of habit included (professional membership fees) were deducted from the capital gains, reducing the taxable amount. Don´t understand that - capital gains is a flat rate tax I thought, not classed as general income. On the taxable amount, the Finanzamt applied the "Progressionsvorbehalt nach dem Grundtarif" @ 31.7757% not capital gains tax. From this calculated tax liability of 559€ it deducted the Kapitalertragsteuer and ausländische Steuer that I paid through my bank directly (415€). It also refunded the solidaritätszuschlag I had paid (22.78€) - I guess on the basis it wasn´t applying capital gains tax. This leaves me 86.22€ to pay. This is actually less than I expected to pay - probably because of the unexpected deducted Werbungskosten. Without these Werbungskosten it would have been more. But I have no idea why the Finanzamt calculated this way, whether they are allowed to, and what consequences there might be for the future if I let it lie. Is it just the FInanzamt applying the most favourable calculation to me? I assume if I appeal and win, this requesting the flat-level capital gains tax to be applied and for the capital income not to be treated as general income (= no deductoble expenses). This would mean me paying more tax. So there is the question of is it worth the time and effort appealing in order to pay about 25€ more tax? My concern is that my capital gains are small today. But if I allow the Finanzamt to tax my capital gains this way, should I have more significant capital gains later in life (e.g. house sale or higher capital gains for other reasons) small Werbungskosten aren´t going to offset the significantly higher Progressionsvorbehalt rate. If the Finanzamt is entitled to calculate this way, and is applying decuctions, then going forward I should actually include all Webungskosten going forward...including the HomeOffice Pauschale of €5 per day. In fact, I would rec quest to amend the 2021 Erklärung to include this on the basis I could not reasonable have expected that the Progressionsvorbehalt would be applied. Can anyone shed any light on this? I only found some (old) articles stating some Finanzbehörden were calculating this way (rightly or wrongly) but no indication as to the private person´s rights going forward.
Thanks Panda! I of course did mean to put the €445 in Part 19 of KAP not the compensation amount. Helpful to get some confirmation of that! I had thought about claiming back from HMRC at the time, just thought it would be easier to get the German authorities to offset it as I am over the €801 limit and because of this payment was having to submit a KAP anyway, and I also didn't fancy chasing HMRC. I guess I´ll just have to go down the HMRC route - I see I´ve still got 3 years to sort it out, so at least I didn´t lose out by sitting on it!
Wanted to resurect this topic. I haven´t had a UK bank account for many years. However, HSBC were a bit naughty and last year I received a refund of GBP 530 for historical overcharging (roughly €600 at the time). As this is a refund, I know I don´t need to declare this. I also received a couple of compensation payments of €50 each - which I understand I also do not need to declare. However, interest on the overcharged amount was also paid: GBP 390 (about €445). I think this shows just how historical the overcharging must have been (I didn´t request further information). UK income tax was charged at 20% on this interest and deducted at source, so roughly €90. I want to include this interest paid on the compensation I received, but also offset the UK tax paid (as far as possible). Looking at the Anlage KAP 2021, this looks like the €600 would go in Field 19, and the UK tax paid entered into field 41. But now I am being informed by someone with a non-German bank account that they declared interest earned there using Analge AUS. This seems wrong to me, but they said the FInanzamt were happy with this. And Finanztip.de suggests if I do complete Field 19 of KAP, then I would also need to complete Anlage KAP-INV! Which I´d rather avoid. https://www.finanztip.de/steuererklaerung-anlage-kap/ Now quite confused - can anyone provide some clarity. The amounts involved mean its really not worth getting a Steuerberater involved! Thanks