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I just started investing in 2021 and upon reading how to calculate the tax I owe for my accumulating ETF, I realised I don't know how to apply the explanations found on the Internet to my situation.

So, the formula found on the Internet is: the value of the ETF at the start of the year * the Basiszinssatz (0.07 % in 2020) * 0.7 * Kapitalertragssteuer and Solidaritätszuschlag (26.375 %).

All good, except, at the beginning of 2021 I had no portfolio since I started investing in April. So let's say I started buying a few ETFs (of the same kind) each month of 2021 until at the end of the year I ended up with 50 ETFs valued 5.000 euro. I didn't sell anything in the meantime.

How can I calculate the taxes I owe based on the above formula? I am totally at loss so any help would be much appreciated. Thank you.

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  • What are you trying to achieve? Basiszinssatz is negative, therefore there are no taxes. Actually, the bank does calculate the taxes and withholds the money. Jan 19, 2022 at 22:20
  • @BernhardDöbler Thank you for the answer. I am trying to fill my taxes for 2021. I am using Degiro and since it's not a german broker, I need to figure it out myself how to culculate the Vorabpauschale for my accumulating ETFs. But since I just started last year, I don't know how to apply the formula I wrote in my OP (and which is used in every explanation related to the subject).
    – Kasia
    Jan 20, 2022 at 6:31
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    Looking at bundesbank.de/en/press/press-releases/basiszinssatz-855336, it seems the "Basiszinssatz" is negative at -0.88%. So there should be no preliminary taxes (Vorabpauschale). Jan 20, 2022 at 11:12
  • @OlafDietsche Oh, I see. I think that's what the responder before you meant too. Sorry if my question sounds silly, but this means that every year when the Basiszinssatz is negative, we should not worry about the Vorabpauschale (since multiplying the numbers by zero doesn't make sense). Thank you!
    – Kasia
    Jan 20, 2022 at 12:16
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    Thank you for the links, very interesting info. I now understand that since the Basiszinssatz is negative, there's no Vorabpauschale. What I can't figure it out how the formula in my original post would have been applied to a portfolio created in the middle of 2021 (assuming there would have been a Basiszinssatz of 0.07, like in 2020), since the first number in the formula is the value of the portfolio in January, but the portfolio didn't exist in January.
    – Kasia
    Jan 20, 2022 at 13:54

1 Answer 1

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Disclaimer: I'm neither a lawyer, tax accountant, nor any other finance professional.


The "Vorabpauschale" will be calculated according to the formula from the value of the shares at the beginning of the year. This is described in Investmentsteuergesetz (InvStG) § 18 Vorabpauschale

vorabpauschale = value(1.1.) * 0.7 * <basic rate>

But there's also a section (2):

(2) Im Jahr des Erwerbs der Investmentanteile vermindert sich die Vorabpauschale um ein Zwölftel für jeden vollen Monat, der dem Monat des Erwerbs vorangeht.

(2) In the first year (when you buy the shares), the value of Vorabpauschale will be reduced by the twelfth part for each month preceding the buying date

When you buy the shares in June, there are five months preceding the date, therefore the Vorabpauschale will be reduced by 5/12, e.g.

vorabpauschale = value(1.1.) * 0.7 * <basic rate> * 7 / 12

At the end of the year, you calculate your profit

profit = value(31.12.) - value(buying date)

Now you take the minimum of both values

base = min(profit, vorabpauschale)

With this value, you calculate the advance tax payment, which is

tax = base * 0.7 * 26.375%

Currently, the basic interest rate is negative. So the calculated vorabpauschale would be negative too, and therefore no advance tax payment will be charged.

See the note from the ministry of finance Basiszins zum 4. Januar 2021 zur Berechnung der Vorabpauschale gemäß § 18 Absatz 14 InvStG

The downloadable PDF states on page 2:

Aufgrund des negativen Basiszins wird keine Vorabpauschale erhoben.

(Because of the negative basic rate, no Vorabpauschale will be charged)

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  • Oh, I think I get it now. The ETFs value refers to all ETFs bought during the year, no matter the price and date (so a sum of all ETF costs - let's say I paid 4000 euro to buy them during 7 months and at the end of the year, they would be valued at 4500 so the 500 euro would be my profit). Thx for the detailed explanation, I hope I got it right. No worries, I will work with a Steurberater to file my taxes, this is just for my general knowledge.
    – Kasia
    Jan 21, 2022 at 10:13

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