Anyone who pays out capital income, especially profit distributions, is obliged to deduct tax. The deduction is normally 25 % of the capital gains. Because the law in principle does not take into account tax exemptions at the level of the recipient, holding structures in particular usually lead to a so-called permanent overpayment of capital gains tax. It can be avoided by a certificate for permanent overpayers according to § 44a (5) sentence 1 EStG from the tax deduction.
In a recent decision, the BFH has dealt with the question of the so-called “type of transactions” of so-called permanent overpayers.
First principle: Who is a permanent overpayer?
According to § 44a paragraph 5 sentence 1 EStG is so-called permanent overpayer who
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.