Taxation in Germany
Below you find information about the German taxation of your investments in Jyske Invest International. When you are fully liable to pay tax to Germany – rather than Denmark – your investments in Jyske Invest International will NOT be taxed in Denmark.
Accumulated deemed distributed income (ADDI)
Accumulated deemed distributed income is the basis for a retroactive withholding tax deduction by a German paying agent in case accumulating non-German fund shares are stored in a German custody when the fund shares are redeemed. For non-German accumulating funds no withholding taxes can be imposed on the annual taxable income as there is no cash flow. The retroactive withholding tax deduction on the ADDI is applicable for corporate and non corporate business investors and private individual investors subject to unlimited German tax liability.
Equity profit for corporations and non-corporate investors
The equity profit consists of dividends, realized and unrealized capital gains/losses from equities and is required to calculate the privileged equity part (95% tax exemption for corporations and 40% tax exemption for non-corporate business investors) for business investors when redeeming the fund shares. The privileged amount equals the positive difference of the equity profit of the fund shares at selling time and acquisition time. As of 1 March 2013 dividends are disregarded in the new equity profit for corporations.
The interim profit represents the interest part of the fund. It is only applicable for private individual investors when acquiring fund shares as negative capital investment income and as positive capital investment income when selling the fund shares.
The following taxation commentary and accompanying information is general in nature and does not constitute taxation advice, nor will it necessarily be appropriate or relevant for certain types of investors such as companies and financial traders. All investors and prospective investors should seek independent professional advice in relation to their tax position since this will ultimately depend on their particular tax status and circumstances.