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.
As of 1 January 2018, fundamental changes applicable to investors liable to pay tax in Germany have been introduced with regard to taxation of investments in cumulative investment funds.
In future, private investors will on an on-going basis be taxed on returns assessed on the basis of the basic rate of interest published by the Bundesministerium der Finanzen (the German Federal Minstry of Finance) multiplied by the repurchase price of your certificates at the beginning of the year, in German ”Vorabpauschale”. Generally, you will at the most be taxed on the actual increase in value of your certificates over the calendar year. Moreover, you will be liable to pay tax when you sell your certificates.
If you purchased certificates before 01/01/2018, they will be considered sold at the repurchase price on 31/12/2017 and repurchased on 01/01/2018 at the same price. You will be taxed on this fictitious profit when you sell your certificates at some later time.
Special rules apply to certificates bought before 01/01/2009.
Accumulated deemed distributed income (ADDI) - until 31 December 2017
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 - until 31 December 2017
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.
Interim profit - until 31 December 2017
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.
Equity investment statements (”Selbstdeklaration”)
From 1 January 2018, the taxation of individual investors will depend on the percentage of a fund's assets invested in equities, as calculated in accordance with German tax rules.
In the equity investment statements listed below, we have indicated whether the funds in question have invested minimum 25% or 51% in equities:
- Selbstdeklaration_Jyske Invest Aggressive Strategy
- Selbstdeklaration_Jyske Invest Balanced Strategy
- Selbstdeklaration_Jyske Invest Balanced Strategy GBP
- Selbstdeklaration_Jyske Invest Balanced Strategy NOK
- Selbstdeklaration_Jyske Invest Chinese Equities
- Selbstdeklaration_Jyske Invest Danish Equities
- Selbstdeklaration_Jyske Invest Dynamic Strategy
- Selbstdeklaration_Jyske Invest Emerging Market Equities
- Selbstdeklaration_Jyske Invest Equities Low Volatility
- Selbstdeklaration_Jyske Invest European Equities
- Selbstdeklaration_Jyske Invest Far Eastern Equities
- Selbstdeklaration_Jyske Invest German Equities
- Selbstdeklaration_Jyske Invest Global Equities
- Selbstdeklaration_Jyske Invest Growth Strategy
- Selbstdeklaration_Jyske Invest Indian Equities
- Selbstdeklaration_Jyske Invest US Equities
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.