GE Tax confirmed that for applications for relief from tax on capital gains, made from Jan. 1, 2023, users must now all electronically transmit the officially prescribed data.
Tax Relief Process
Use of an officially designated interface applies, is based upon cf. Section 50c para. 5 sentence 1, used in conjunction with Section 52 paragraph 47a sentence 2 of EStG.
The Income Tax Act (EStG), sets out the basis for the provision of all such tax relief.
The transmission of such requests then takes place via the GE Tax online portal (BOP).
Mass Data Interface
Due to the high number of applications from institutional submitters on behalf of their customers, GE Tax will be offering mass data interface for computer center operation.
Tax advisors and other institutions authorized under the Tax Advisory Act (StBerG), cf. Sections 3, 3a et seq. or 4, can be authorized by GE Tax to use this future interface.
The mass data interface is initially planned for refund applications § 50c Para. 3 EStG.
For the time being, therefore, the mass data interface will not be offered for any of the applications for exemption from tax on capital gains according to § 50c para. 2 EStG.
The new mass data interface is currently under development, but in order to be able to identify future users of the interface as early as possible and to be able to involve them for information purposes, GE Tax is planning to set up a so-called user group.
Institutions interested in using the future mass data interface can register two people.
The first, purely informational appointments of a user group on temporal perspectives and basic planning for the new mass data interface, will not deal with technical details.
It is also pointed out the user group will only deal with mass data interfaces, and the electronic individual application via GE Tax online portal, is not part of the user group.
Those wishing to participate, can use the form to express interest, by Mar. 30, 2023.
Mar. 2024 Refund of Capital Gains Tax
On Mar. 1, 2024, GE Tax said the electronic application procedure for reimbursement of capital gains tax, under s.11 Investment tax act (InvStG), is available.
Application must be submitted to the federal office for respective financial year of the investment fund within 2 years of expiry BZSt in line with officially prescribed model.
May 2024 Refund Procedure
On May 2, 2024, GE Tax commented on the refund procedure for tax on capital gains pursuant to section 32 (6) of the Corporate income tax act (KStG).
With Growth opportunities act (see #179581), there is the possibility of obtaining a reduction of capital gains tax to zero upon application, for non-profit organizations.
Document dated May 2, 2024, received from GE Tax May 10, summarized on May 14.
Sep. 2024 Income Tax Act (EStG) Reporting
On Sep. 4, 2024, GE Tax published a letter from the Federal Ministry of Finance dated Aug. 27, 2024, confirming that the implementation date of a new reporting procedure according to Sections 45b and 45c EStG on capital income had now been postponed.
In future, the information according to Section 45b EStG and Section 45c EStG must be submitted for the first time for all the capital income received after Dec. 31, 2025.
The proposed changes are part of the wider application of the Withholding Tax Relief Modernization Act (AbzStEntModG), the full introduction of which had been reviewed.
