Here you can select the type of statement.

Depending on the statement, different lines of the form KAP will be relevant to you when entering your data.

Statements to choose from:

• Tax statement for private accounts/deposits
• Tax statement for a life insurance
• Interest from the tax office on tax refunds
• Another tax statement

From 2017 onwards, you will no longer have to submit a tax statement for domestic capital gains with your tax return. However, as of 2017, the so-called document retention requirement will apply, which means you must be able to submit the tax statement at the request of the tax office.

Only if you want to claim losses or if you want to deduct taxes on certain income, the tax statement must always be submitted together with the tax return.

Select "yes" if you incurred losses from:

• capital transactions,
• sale of shares,
• forward transactions or
• other capital claims.

Enter here by how much the additional amount is to be reduced in accordance with sect. 10 of the Foreign Tax Act (AStG).

The capital gains are not taxed at the final withholding tax rate of 25%, but are subject to the individual tax rate.

Life insurance policies that

• were concluded after 31.12.2004 and
• which were paid out after twelve years after conclusion of the contract,

are half tax-free.

The reduction for the half tax exemption is made by the tax office if the taxpayer is at least 60 years old.

If the income originates from a foreign life insurance policy, select "yes".

Enter here the unbalanced losses from forward transactions (Termingeschäfte).

Losses from forward transactions, in particular from the sale, closing out and expiry of options, may only be offset against gains from forward transactions and against income from option premiums up to the amount of 20.000 Euro.

Losses that have not been offset may be carried forward to subsequent years and offset against profits from forward transactions and against income from option premiums in the amount of 20.000 Euro each, if a profit or income that can be offset remains after the offsetting of losses during the year.

Enter here losses that you incurred according to line 25 of your tax statement and that were not previously subject to domestic tax deduction. These include

• losses from the total or partial uncollectibility of a capital claim,
• losses from the write-off of valueless assets,
• losses from the transfer of valueless assets to a third party, or
• losses from any other loss of assets within the meaning of section 20 para. 1 of the Income Tax Act (EStG).

These losses can only be offset against income from capital assets up to the amount of 20.000 Euro. Losses that have not been offset can be carried forward to subsequent years and offset against income from capital assets in the amount of 20.000 Euro each.

The bank might confirm the losses incurred due to the total or partial uncollectibility of a capital claim, which you can offset in the course of the assessment.

Enter the amount of capital gains from line 7 in your tax statement.

Here you enter the profits from share sales within the meaning of sect. 20 para. 2 sentence 1 no. 1 Income Tax Act (EStG) according to line 8 of your tax statement.

Enter income from option premiums and profits from forward transactions according to line 9 of your tax statement.

Enter here the profits from the sale of protected old shares according to line 10 of your tax statement.

Changes in the value of protected old shares from 1 January 2018 (fund shares acquired before 1 January 2009 and held as private assets since that date) are taxable if they exceed the tax allowance of 100.000 Euro. The tax allowance is taken into account by the tax office.

You can find the amounts to be entered in the information section of the tax statement.

Only the capital gains are to be entered. Capital losses should not be balanced against capital gains.

Enter here the substitute assessment basis within the meaning of sect. 43 a para. 2 Income Tax Act (EStG) according to line 11 of your tax statement.

Enter the unbalanced losses without the losses from the sale of shares according to line 12 of your tax statement.

Enter the unbalanced losses from the sale of shares according to line 13 in your tax statement.

If you wish to claim losses from the sale of shares, you must always submit the corresponding tax statement together with the tax return.

Enter here the unbalanced losses from forward transactions (Termingeschäfte) according to line 14 of your tax statement.

Losses from forward transactions, in particular from the sale, closing out and expiry of options, may only be offset against gains from forward transactions and against income from option premiums up to the amount of 20.000 Euro.

Losses that have not been offset may be carried forward to subsequent years and offset against profits from forward transactions and against income from option premiums in the amount of 20.000 Euro each, if a profit or income that can be offset remains after the offsetting of losses during the year.

Enter the losses that you incurred according to line 15 of your tax statement. These include:

• Losses from the total or partial uncollectibility of capital receivables,
• Losses from the write-off of valueless assets,
• Losses from the transfer of valueless assets to a third party or
• Losses from any other loss of assets.

These losses can only be offset against income from capital assets up to the amount of 20.000 Euro. Losses that have not been offset can be carried forward to subsequent years and offset against income from capital assets in the amount of 20.000 Euro each.

The bank might have notified you of any losses incurred as a result of the total or partial uncollectability of receivables from investment, which you can offset during the assessment.

Enter the claimed saver's allowance according to line 16 of your tax statement.

Enter foreign capital gains without tax deduction according to line 19 of your tax statement.

This includes, for example, investment income from foreign reinvesting investment funds (even if they are held in a domestic bank deposit) and income from foreign banks (e. g. dividends and interest paid by a foreign debtor). Please submit the corresponding income statement of your bank.

This income is not subject to withholding tax and must be taxed subsequently in the income tax return.

Enter here option premiums and profits from forward transactions that were not subject to the final withholding tax. This amount must be included in lines 18 and 19 of the Form KAP.

Example: Profits from forward transactions that were settled via a foreign broker.

Enter losses from the sale of investments that were not subject to the final withholding tax according. This amount must be included in lines 18 and 19 of the form KAP.

Example: Losses from the sale of bonds held in a foreign securities account.

Enter here the income from life insurance policies according to line 30 of your tax statement

• that were concluded after 31.12.2004 and
• for which the benefits were paid out after the age of 60 and
• which were paid out after twelve years after conclusion of the contract.

Half of the capital gains from such life insurance policies are tax-exempt. The reduction for the half tax exemption is made by the tax office.

Please find the capital gains from a domestic insurance contract in the tax statement. In the case of a foreign insurance contract, you can determine the capital gains from the difference between the insurance benefit and the sum of the premiums paid on it.

In the case of income from unit-linked life insurance policies, only the amount resulting from the partial tax exemption within the meaning of sect. 20 para. 1 no. 6 sentence 9 of the Income Tax Act (EStG) is to be entered. Please find the value to be entered in the tax statement of your provider.

Enter here extraordinary capital gains for which the reduced taxation according to sect. 34 para. 1 of the Income Tax Act (EStG) is applied for.

If you receive extraordinary capital income, this is considered extraordinary income. Extraordinary income is tax-privileged with the relevant taxable portion according to the so-called one fifth regulation. Provided that the additional payment extends over at least two assessment periods and covers a period of more than 12 months (sect. 34 para. 2 no. 4 Income Tax Act (EStG)).

Enter here the capital gains tax according to line 37 of your tax statement.

Enter here the solidarity surcharge according to line 38 of your tax statement.

Enter here the church tax according to line 39 of your tax statement.

Select Yes if you want to enter information about foreign taxes at source according to lines 40 to 42 of your tax statement.

In the case of foreign taxes at source, a distinction is made between "credited" or "creditable" foreign taxes:

• Foreign taxes that have already been credited by the credit institution must be entered in line 40.
• Foreign taxes that have not yet been credited but are creditable must be entered in line 41.
• In addition, there are notional foreign taxes. These are stated by the credit institutions in exceptional cases if the deductibility of withholding taxes cannot be assessed, for example, in the case of notional withholding tax with special credit requirements.

Only the foreign taxes that have been assessed and paid and for which no claim for reduction can be asserted in the source state - according to its national law or on the basis of a double taxation agreement (DTA) - are creditable. For individual questions on the final withholding tax, see the Federal Ministry of Finance (BMF) letter dated 18 January 2016.

Enter foreign taxes at source that have already been credited by your bank against the final withholding tax to be withheld and stated in the tax statement in line 40.

The crediting of withholding taxes carried out by the bank is limited in amount to the rate permitted under the respective double taxation agreement (DTA). If the maximum rate permitted under a DTA is higher than 25%, the creditable withholding tax is limited to 25%.

Enter here creditable - not yet credited - foreign taxes at source. Foreign taxes that have not yet been credited but are creditable must be entered in line 41.

Enter here notional foreign taxes at source according to line 42 of your tax statement.

In exceptional cases, credit institutions may not assess the deductibility of taxes at source, for example, in the case of notional taxes at source with special credit requirements. In this case, these notional taxes are shown here in the tax statement. The tax office will decide on the creditability of notional taxes at source.

Record capital gains taxes on life insurance here according to line 43 of your tax statement.

Enter here the solidarity surcharge on life insurance policies according to line 44 of your tax statement.

Enter here the church tax on life insurance policies according to line 45 of your tax statement.

Select Yes if you want to enter amounts for lines 27 to 33 of the Form KAP.

In certain cases, capital gains are always subject to your individual tax rate and thus to the tariff tax. The final withholding tax rate of 25% does not apply in these cases. These cases include

• Income taxable at the standard rate (line 28): This includes, for example, loans to corporations or cooperatives in which you hold at least 10%.,
• Gains from the sale or redemption of investments or capital claims taxable at the standard rate (line 29),
• Investment income from life insurance policies concluded after 31.12.2004 (line 30).

Enter here all separately and uniformly determined additional tax amounts pursuant to sect. 10 of the Foreign Tax Act (AStG).

The capital gains are not taxed at the final withholding tax rate of 25%, but are subject to the individual tax rate.

Enter the capital gains taxed at the standard rate. This includes, among other things, income from other capital claims of all kinds, silent partnerships and participatory loans.

If, for example, you have granted a loan to a person closely associated with you, the income from it (minus the related income-related expenses) must be declared as income here, provided that the expenses corresponding to the capital gains are operating expenses or income-related expenses for the debtor.

A related party is to be assumed if there is a relationship of dependency between the two persons and the controlled person does not have any leeway for his or her own decisions.

Loans to corporations or cooperatives in which you hold at least 10% of the shares and for back-to-back financing are also to be entered here.

Please enter the withholding tax amounts attributable to these capital gains in lines 51 to 53. A saver's standard allowance is not granted for this income.

The capital gains are not taxed at the final withholding tax rate of 25% but are subject to the individual tax rate.

Enter the profits from the sale or redemption of investments.

The capital gains are not taxed at the withholding tax of 25% but subject to the individual tax rate.

Enter here interest which you have received from the tax office on tax refunds and which is not business induced.

Interest paid by the tax office to the taxpayer on the basis of income tax refunds (so-called refund interest) is subject to income tax (Federal Court of Finance (BFH) VIII R 36/10).

You must provide information here if the foreign capital gains include

• gains from the sale of shares,
• option premiums and gains from forward transactions,
• losses from capital gains without the sale of shares, or
• losses from the sale of shares

You can also enter here losses from forward transactions and from other capital claims.

Specify here the capital gains from the sale of shares that have not been subject to withholding tax. This amount must be included in lines 18 and 19 of Form KAP.

Example: Profits from the sale of shares held in a foreign investment account.

Enter losses from the sale of shares that were not subject to the final withholding tax. This amount must be included in lines 18 and 19 of the form KAP.

Example: Losses from the sale of shares held in a foreign securities account.

Enter here domestic capital gains that were not subject to the withholding tax.

This applies, for example, to personal loans that you have granted to a third party. They are subject to subsequent taxation in the income tax return.

If you have granted a personal loan to a person close to you, the income generated from it, after deduction of the income-related expenses incurred, cannot be declared here as income. A person is deemed to be a related party if there is a relationship of dependency between the two persons and the person controlled has no room for manoeuvre in making his/her own decisions.

In certain cases, you can have the tax withholding checked by the tax office if

• the saver's standard allowance was not completely used up at tax deduction,
• a substitute assessment basis exceeding the actual investment income was used for the tax deduction because the bank was not aware of the acquisition costs,
• losses at a credit institution have not been taken into account or have been taken into account to a too low extent when deducting tax and/or
• the income is only taxed to a limited extent in Germany under a double taxation agreement.

In these cases, enter the respective corrected amounts in the following fields and explain them on a separate sheet.

Half of the capital gains from insurance contracts concluded after December 31, 2004 (capital insurances with savings form and annuity insurances with capital option rights, unless the annuity payment is chosen), the payment of which was made after reaching the age of 60 and after twelve years from the conclusion of the contract, are tax-free. For contracts concluded from 2012 onwards, the age of 62 is decisive.

The capital gains from a domestic insurance contract can be found in the tax statement that you received from your insurance provider.

In case of a foreign insurance contract, you should calculate the capital gains from the difference between the insurance benefit and the sum of the premiums paid on it.

Half of the tax exemption is reduced by the tax office.

Please enter any remuneration and earnings as defined in section 32d paragraph 2 number 4 of the Income Tax Act (EStG). This includes hidden distribution of profits to closely related persons.

Please contact a tax consultant or lawyer in your area for advice on tax issues.