"FAQ retrieval of estimates"

Retrieval of estimates

The new Investment Tax Act, which came into force on 1 January 2018, provides that the tax bases for public AIFs/OGAWs with a cut-off date of 31 December 2017 may be published in the Federal Gazette until 31 December 2018 (cf. BMF letter of 9 April 2018). The reason for this eight-month extension is that all funds with a different financial year as at 31 December 2017 also had to submit a so-called short financial year for tax purposes (combined with the retention of income) and therefore the tax bases for all domestic and foreign funds must be published for this date. To simplify matters, investment companies may retain estimates in accordance with a letter from the Federal Ministry of Finance dated 8 November 2017 (AZ IV C 1 - S 1980-1/16/10010 :010).

If the Investment Company has used the simplified procedure (application of an estimated value), the Investment Company must report a correction of the reinvestment values in the Federal Gazette if the actual tax reinvestment values determined at a later date as at 31 December 2017 differ by more than 30% from the estimated value used.

If the correction was made by the Investment Company in calendar year 2018, the Custodian Institution has settled the corresponding correction and thus made the tax adjustment.

If the correction by the Investment Company was only made after 2018, i.e. from 1 January 2019, investors are obliged to declare the differences themselves as part of the assessment procedure in accordance with the application letter dated 19 December 2019, no. 56.2, if the differences to be charged to the investor amount to at least €500 (section 5(1) sentence 1 no. 5 sentence 10 and section 13(4b) sentence 3 of the InvStG 2004).

In addition, the notional capital gain calculated for the reporting date of 31 December 2017 must be corrected at the time of the actual sale of the old unit in accordance with section 56(3) sentence 1 of the InvStG by the differential amounts for which a correction is required in accordance with section 8(5) of the InvStG 2004 (see also margin no. 196a and Annex 6 of the BMF letter dated 18 August 2009, BStBl I p. 931).

The fictitious capital gain does not have to be corrected,

  • in the case of a legacy share protected by inventory, or
  • if the differences have not been taken into account in the assessment procedure, e.g. because the differences to be charged to the investor amount to less than EUR 500 (Article 5 (1) Clause 1 No. 5 Clause 10 and Article 13 (4b) Clause 3 InvStG 2004)

A correction by the depositary institution is expressly excluded by the BMF application letter and therefore cannot be made. For the same reason, we are also unable to make a corresponding statement on your tax certificate.

Please refer to the BMF application letter of 19.12.2019 for the procedure for corporate investors.

Under this link you will find the list of funds for which the correction of the estimated values was only made after the 2018 tax year.

A value deviating from zero or blank in the column "(ED134) Delta per unit" means that

the actual tax retention value as at 31 December 2017 differs by more than 30 % from the estimated value used

The individual securities account balance in the listed classes as of 31 December 2017, multiplied by the respective delta value per unit, results in the difference, which must be declared by the taxpayer himself in the assessment procedure if the threshold of €500 is exceeded.

Follow this link to find the list of funds for which the correction of the estimated values was only made after the 2018 tax year.

Unable to find answers to your questions? Simply send an e-mail to info(at)fondsdepotbank.de.