Field help: Do the capital gains include extraordinary income that is taxed at a reduced rate?

Please indicate any extraordinary capital gains for which you would like to apply the reduced taxation according to sect. 34 para. 1 of the Income Tax Act (EStG).

Extraordinary capital gains are categorised as extraordinary income and can be taxed at a preferential rate under certain conditions in accordance with the so-called "one fifth regulation". This regulation applies if:

• the capital gains extend over at least two assessment periods and
• a time period of more than 12 months is covered (sect. 34, para. 2, no. 4 of the Income Tax Act (EStG)).

Examples of extraordinary capital gains:

• Severance payments upon termination of participation agreements, for example, upon dissolution of a silent partnership or an atypical silent participation.
• Remuneration for the transfer of rights, such as the transfer of participation rights or sales rights from long-term capital investments.
• Additional payments of income from capital assets, for example, interest or profit sharing, that have been accumulated over several years and are paid out in one sum.
• One-off profit participations from shareholdings, for example, when a holding company is dissolved.
• Capital gains from long-term participations, when an investment is sold after many years and the profit is considered extraordinary.
• One-time payments for the surrender of shares, such as the voluntary surrender of shares with special rights or preferential shares.
• Repayments from insurance products with capital gains, if these returns from endowment life insurance have been accumulated over a long period of time and are paid out in a single amount.