All information about taxes with your CapTrader securities account

Fully reinvest profits: No automatic withholding of capital gains tax at CapTrader

When investing and investing, the topic of tax is an important factor for a successful investment strategy. Of course, you will know that a different amount of capital gains tax is due on your realized gains depending on your place of residence. The capital gains tax (in Germany since 2009 in the form of the final withholding tax) is not automatically withheld at CapTrader, which means that almost your entire capital, including all income and gains, is fully available to you for profitable further investment. The only exception here is the deduction of a withholding tax on dividend payments - you can find out more about this in the section "Withholding tax with CapTrader".

Only in the following year you declare your accrued investment income as part of your personal tax return and can thus achieve an interest-interest effect for your profits. This is possible because your securities account is not legally located in Germany or your country of residence, but with our European partner Interactive Brokers. CapTrader is therefore exempt from the so-called "advance withholding".
Good to know: Since we do not withhold any capital gains taxes, you do not need to submit an exemption order to us. You can simply claim your saver's allowance in your tax return.

Withholding tax with CapTrader

As soon as you also hold shares in your securities account that pay dividends, the issue of withholding tax will come up. In general, a so-called withholding tax is deducted from share holders when a dividend is paid, so that only the net amount is credited to the securities account (net amount = gross dividend less withholding tax). The clearing houses are obliged to make this deduction directly "at source". The withholding tax deducted is then paid by the clearing houses to the responsible tax authority (for U.S. equities, for example, this is the U.S. Treasury Department).

Depending on the legal situation in your country, you can then offset this withholding tax paid against your capital gains tax payable - so you do not have to pay "double" tax on dividends. Important for your personal tax return: Your securities account statement is often already accepted as proof that dividend payments have already been subject to withholding tax. If this is not the case, you can obtain an official certificate from CapTrader, the so-called "tax certificate". Individual tax certificate (Tax Voucher), apply with costs.

Details on the individual dividend credits and their withholding tax deductions can be found in your Activity Statement (Account Statement: Activities) in your account management (Client Portal) at CapTrader.

Income with US withholding tax from US securities

For investors, a withholding tax rate of 30 % is due on income from dividends from U.S. securities. According to the double taxation agreement between the Federal Republic of Germany and the USA, a reduction of this withholding tax to 15 % is possible for dividends. This also applies to most other EU countries. In case of residence outside the EU, a different withholding tax rate may apply.

The reduction in withholding tax can be claimed by filing the appropriate U.S. tax form. At Opening a CapTrader deposit all non-U.S. individuals and corporations must complete this so-called "W-8" tax form to confirm their country of tax residence and clarify whether a reduced withholding rate applies to them.

Initial registration & data collection

In the online application, the W-8 form is automatically filled out for you, so you don't need to fill out any additional documents here!
Subsequently amended U.S. tax forms can be taken into account retroactively only for dividend payments within the same calendar year.

Important: Provided you keep all personal data up-to-date in the account management (Client Portal), this form will remain valid. Every three years, you will be prompted to check the information in the W-8 once and confirm that it is up to date.

If you do need to change your W-8 form, simply use our guide to updating your W-8 form that we have put together for you.

US Tax Forms

Notice: CapTrader recommends contacting your tax advisor for tax related questions. CapTrader is not allowed to provide tax advice.

Disclaimer

This is a marketing communication within the meaning of Section 63 (6) of the German Securities Trading Act and does not contain investment strategy recommendations, investment recommendations or financial analyses in accordance with Section 85 of the German Securities Trading Act and Article 20 of the Market Abuse Regulation. It therefore does not fulfill the legal requirements to guarantee the objectivity of investment strategy recommendations/investment recommendations/financial analyses. CapTrader GmbH or its employees are therefore not legally prohibited from trading or providing services in the securities products mentioned therein prior to publication of the information.

Past performance, simulations or forecasts are not a reliable indicator of future performance. Mandatory information and limitation of liability for CapTrader and any third-party content providers can be found at https://www.captrader.com/marketingmitteilung/angaben
Please note that investing in financial instruments involves high risks and take note of our disclaimer and the mandatory legal information at the locations indicated.

Mandatory information

Responsible: CapTrader GmbH, Elberfelder Straße 2, 40213 Düsseldorf; Commercial Register Number: HRB 86537 Düsseldorf Local Court; VAT ID DE323771603; Managing Directors Andreas Weiß, Christian Weiß, Michael Heyder; Tel: +49 211-740786-00, Fax: +49 211-740786-90.

Zuständige Aufsichtsbehörde: Bundesanstalt für Finanzdienstleistungsaufsicht, Graurheindorfer Straße 108, D – 53117 Bonn und Marie-Curie-Str. 24-28 D – 60439 Frankfurt am Main, Tel: 0228 4108 – 0 Fax: 0228 4108 1550 E-Mail: poststelle@bafin.de; Institutsnummer 10156708

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Distribution: This publication may only be distributed in accordance with the laws of the respective countries, and persons in possession of this publication should inform themselves about the applicable local regulations. The information contained herein is not intended for natural or legal persons who, due to their place of residence or business, are subject to a foreign legal system that imposes restrictions on the distribution of such information. The contents are therefore exclusively in German. In particular, this publication contains neither an offer nor an invitation to purchase securities to citizens of the USA, Great Britain and Australia.

Taxes: The tax treatment of financial instruments depends on the personal circumstances of the respective investor and may be subject to future changes, which may also have a retroactive effect.

Historical observations and forecasts are not a reliable indicator of future developments. The facts presented in particular in connection with product information are for illustrative purposes only and do not permit any statements to be made about future profits or losses. Any conditions stated are to be understood as non-binding indications and are dependent on market developments on the day of conclusion.

CapTrader accepts no liability for direct or indirect damage caused by and/or in connection with the distribution and/or use.

CapTrader is not obliged to update, amend or supplement the information if a circumstance mentioned in this publication or a statement, estimate or forecast contained therein changes or becomes inaccurate. The presentation of the performance of financial instruments over previous periods does not provide a reliable indication of their future performance. No guarantee can therefore be given for the future price, value or income of any financial instrument mentioned in this publication.

Despite careful control of the content, we assume no liability for the content of external links. The operators of the linked pages are solely responsible for their content.

Taxes: The tax treatment of financial instruments depends on the personal circumstances of the respective investor and may be subject to future changes, which may also have a retroactive effect.

The information on this page does not constitute tax advice and is intended for information purposes only. Please contact your tax advisor for all tax-related questions.