Capital gains tax exemption

In certain cases, you can avoid the tax deduction on capital gains earned from the outset: Exemption Order (FSA) If your taxable investment income does not exceed €801 or €1,602 per year (for jointly assessed spouses or life partners), an exemption order from your bank is sufficient to avoid the bank's tax deduction of capital gains. You can also distribute the saver lump sum of € 801 or € 1,602 to several credit institutions. Within a credit institution, it is not permissible to limit the exemption order to individual accounts or custody accounts. Non-assessment certificate (NV certificate) If your taxable income (including capital gains) in the calendar year does not exceed the basic allowance of income tax, you can apply for an NV certificate at your competent tax office of residence. The NV certificate will then be sent by the tax office. An NV certificate is only required if your taxable investment income exceeds the saver lump sum of €801 or €1,602 per year. Otherwise, an exemption order from your bank is sufficient. After presenting the NV certificate to your bank, it can pay out the investment income without deduction of taxes. When it comes to the number of certificates, please keep in mind that you will need a copy for each credit institution where you generate investment income. An NV certificate will not be issued if you are expected to be assessed for income tax or on application. Therefore, you will not receive an NV certificate if a remaining loss deduction has been determined for you by the tax office. The NV certificate is issued subject to revocation with a maximum period of validity of three years and must end at the end of a calendar year.

Fsa: Indication of the identification number to the credit institution (if applicable by both spouses/life partners) NV certificate: Proof of income When applying for a minor child, please attach proof that the child is entitled to dispose of the account in question.


Exemption order You will receive the application according to officially prescribed models from your credit institution. Non-assessment certificate The "Application for the issuance of a non-assessment (NV) certificate" (form NV 1 A) can be obtained from your tax office or online via the form management system of the Federal Ministry of Finance (https://www.formulare-bfinv.de/ffw/form/display.do?%24context=94498C22EC86214366C0).

Preconditions
The prerequisite for the exemption (FSA and NV certificate) is that you earn certain capital gains, for which there is in principle an obligation to withhold capital gains tax. NV certificate: The issuance of an NV certificate is only possible if your total income is so low that no income tax is expected to be incurred.
Fsa: You can issue an exemption order to your bank. NV certificate: You can apply for the NV certificate at your tax office of residence with the "Application for the issuance of a non-assessment (NV) certificate" (NV 1 A). If the requirements are met, your tax office will issue the NV certificate for a maximum of three calendar years.

Responsible for the content
Ministry of Finance and for Europe of the State of Brandenburg

Last update or date of publication
28.10.2020