Income from capital assets is one of the most relevant areas of tax law, especially for GmbH investments and private investment. Many training and study programmes also focus on this area. Reason enough to take a closer look at § 20 Income Tax Act (EStG), to shed light on principles and get to know relevant exceptions!
The legislature has devoted several regulations to the income from capital assets. Specifically, §§ 20, 32d and 43 to 45e EStG deal exclusively with this type of income. Fortunately, you can already find the most important basics in § 20 EStG, because here is standardized what falls under the capital income:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.