Field help: (2023) Distribution before partial exemption

There are so-called "partial exemptions" (Teilfreistellungen) to balance the taxes already levied on domestic income at the fund level and to compensate the eligibility of the foreign withholding tax.

This means that a certain percentage remains tax-free at the investor level. For private investors, the partial exemptions, depending on the fund type, amount to

• 15 % for balanced mutual funds
• 30 % for equity funds
• 60 % for property-based funds
• 80 % for property-based funds with predominantly foreign properties

The investment conditions of the respective fund in the sales prospectus are decisive for the classification as equity, balanced mutual or property-based funds and thus for the amount of the partial exemptions.

Example: An investor participates in an equity fund in 2023 and receives a distribution of 1.000 Euro. The exemption orders for capital gains are exhausted so that 30 % of the 1.000 Euro are granted a partial exemption. The remaining 700 Euro are taxable and are subject to withholding tax of 25 % (plus solidarity surcharge and church tax, if applicable).