# Germany - How are Acc ETFs taxed after the first year of investing? (confused about how I can apply the calculation formula)

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 SolidaritĂ¤tszuschlag (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.

• 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). Jan 20, 2022 at 6:31
• 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! Jan 20, 2022 at 12:16
• 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. Jan 20, 2022 at 13:54

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) Â§ 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 ZwĂ¶lftel fĂĽr 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 gemĂ¤Ăź Â§ 18 Absatz 14 InvStG