Re: Proposed tax changes from 01.01.2025 (Jahressteuergesetz 2024)
Posted: Wed Nov 06, 2024 6:34 pm
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That's it.Anne Britz wrote: ↑Thu Nov 07, 2024 11:57 pm Or will they attempt to apply the new rules on ALL of my gains, meaning I should start selling now!?
There will be some minor changes, e.g. the lawyers are not happy that it forbids them to use their lawyer-specific electronic bEA software from being used to write messages to the Finanzamt, so they will get overturned in the Bundesrat: https://rsw-beck-de.translate.goog/aktu ... r_pto=wappalma.freya wrote: ↑Fri Nov 08, 2024 1:30 am Are there likely to be any changes to the law when it is discussed in the Bundesrat?
No, as you said, it has already passed the Bundestag.alma.freya wrote: ↑Fri Nov 08, 2024 1:30 am Also does the coalition collapse have any impact on the law? I assume not as it's already passed the Bundestag.
Thanks. I am most interested in Artikel 11 Änderung des Investmentsteuergesetzes, specifically 5.2.b:PandaMunich wrote: ↑Fri Nov 08, 2024 2:44 amThere will be some minor changes, e.g. the lawyers are not happy that it forbids them to use their lawyer-specific electronic bEA software from being used to write messages to the Finanzamt, so they will get overturned in the Bundesrat: https://rsw-beck-de.translate.goog/aktu ... r_pto=wappalma.freya wrote: ↑Fri Nov 08, 2024 1:30 am Are there likely to be any changes to the law when it is discussed in the Bundesrat?
But the things we care about, i.e. the "real" tax stuff, will not change.
So no hope there.
https://www.bundesrat.de/SharedDocs/dru ... onFile&v=1 (page 22)im Zeitpunkt der Veräußerung im Sinne des Satzes 1 unmittelbar oder mittelbar Investmentanteile
an dem Investmentfonds hält, deren Anschaffungskosten mindestens 500 000 Euro betragen
No, don't worry.alma.freya wrote: ↑Fri Nov 08, 2024 9:58 am I am most interested in Artikel 11 Änderung des Investmentsteuergesetzes, specifically 5.2.b:
https://www.bundesrat.de/SharedDocs/dru ... onFile&v=1 (page 22)im Zeitpunkt der Veräußerung im Sinne des Satzes 1 unmittelbar oder mittelbar Investmentanteile
an dem Investmentfonds hält, deren Anschaffungskosten mindestens 500 000 Euro betragen
Mostly I am interested to know if they will reduce this limit, or make an adjustment so that it covers all Investmentfonds rather than 500 000 per Investmentfonds.
Does it not also apply to people who have acquired over 500 000 of an ETF? E.g. if I receive an inheritance of 550 000 and purchase shares via an ETF, I would also be liable to pay the exit tax.PandaMunich wrote: ↑Fri Nov 08, 2024 10:23 amNo, don't worry.alma.freya wrote: ↑Fri Nov 08, 2024 9:58 am I am most interested in Artikel 11 Änderung des Investmentsteuergesetzes, specifically 5.2.b:
https://www.bundesrat.de/SharedDocs/dru ... onFile&v=1 (page 22)im Zeitpunkt der Veräußerung im Sinne des Satzes 1 unmittelbar oder mittelbar Investmentanteile
an dem Investmentfonds hält, deren Anschaffungskosten mindestens 500 000 Euro betragen
Mostly I am interested to know if they will reduce this limit, or make an adjustment so that it covers all Investmentfonds rather than 500 000 per Investmentfonds.
This is a measure meant to catch out people who own at least 1% of a German company (GmbH or UG or AG) and who until now, when moving away from Germany, avoided paying exit tax according to the existing § 6 AStG, simply by creating an investment fund just for themselves and then sticking their shares into that investment fund.
Because then they no longer owned at least 1% of a German company and rhey didn't have to pay exit tax.
So all they're doing now is closing a loophole.
Thank you for your quick response, Panda!PandaMunich wrote: ↑Fri Nov 08, 2024 2:39 amThat's it.Anne Britz wrote: ↑Thu Nov 07, 2024 11:57 pm Or will they attempt to apply the new rules on ALL of my gains, meaning I should start selling now!?
And to be clear, them taxing only the gains (= difference between what was paid in and what was paid out) was the old rule.
The new rule is that you have to tax 100% of the withdrawal (= what you paid in + gains over all these years).
Of course, the small part of the withdrawals that pertain to your "contributions from my after-tax German earnings for 1993-97" will continue to fall under the old rule, i.e. there, you will only have to tax the gain (= difference between what was paid in and what was paid out).
The problem will be identifying that part.
Yes, but in that case, a colleague of mine has come up with a workaround, i.e. you can still avoid exit tax if these are "normal" investment shares that are traded on a stock exchange, which ETF (= exchange-traded funds) of course are.alma.freya wrote: ↑Fri Nov 08, 2024 10:55 am Does it not also apply to people who have acquired over 500 000 of an ETF? E.g. if I receive an inheritance of 550 000 and purchase shares via an ETF, I would also be liable to pay the exit tax.