Income Tax Law
The following information is only relevant for private customers who are subject to German tax law.
The products traded with us are valued as forward transactions for tax purposes and are subject to the withholding tax / capital gains tax.
As part of the withholding tax transfer, FXFlat makes use of the option of implementing the changed regulation at customer level only from 01.01.2022, i.e. there will be no automatic deduction of the withholding tax according to the new regulations in 2021 (permitted in accordance with the letter of the Federal Ministry of Finance dated 11/11/2020). Losses will be fully offset against profits regardless of the amount. Capital gains tax is only paid if no losses are available.
In the year 2021, it is up to our customers to carry out the correct taxation with regard to the profits generated from forward transactions, taking into account the tax regulations of § 20 paragraph 6, sentences 5 and 6 of the Income Tax Act (new version) applicable from 01.01.2021 as part of an annual tax return.
Due to a change in income tax law, profits from forward transactions can only be made from 01/01/2021 with losses amounting to a maximum of € 20,000 per calendar year can be charged. The excess is subject to taxation (Section 20 (6), sentences 5 and 6 of the Income Tax Act). Any additional losses can be carried over to the following year.
Therefore, as a customer, you have the mandatory obligation in 2021 to report all your profits and losses to the tax office yourself in the context of a tax return and to tax them in accordance with the regulation that will apply from 01.01.2021!
At this point, we would like to expressly point out that due to the changes in the taxation of forward transactions from 01/01/2021, you may be required to make considerable additional payments at the end of the year.
We therefore urgently ask you to inform yourself about the changed tax changes and to contact your tax advisor if you have any questions or uncertainties. FXFlat does not offer any advice or further information regarding your personal tax liability in this context.
We also point out that this letter does not constitute tax advice.
The information is provided without guarantee.