Tax
The Vorabpauschale (advance lump-sum tax) is an annual advance tax on the deemed earnings of accumulating funds, in place since 2018 to align them with distributing funds.
The advance lump-sum tax was introduced in 2018 to equalise the tax treatment of accumulating and distributing funds. It is a tax on deemed earnings, charged annually even when no actual distribution occurs.
The calculation is based on the base interest rate (set by the Federal Ministry of Finance), the fund value at the beginning of the year, and the actual performance. A partial exemption of 30% applies to equity funds.
The advance lump sum is debited from the settlement account in early January and later credited against the tax liability upon sale: no double taxation occurs.
See taxes, dividends and allocation for your whole portfolio in one place.