Vorabpauschale (advance lump sum)
An accumulating ETF pays nothing out — yet German tax law still asks you to tax a small, formula-based amount every year: the Vorabpauschale. It makes sure that funds which retain their gains are still taxed as you go. capi.tax computes it per purchase lot for each of your fund holdings (§ 18 InvStG).
How it is calculated
Three steps, in this order:
- Base return (Basisertrag) = redemption price at the start of the year × base rate × 70 % (§ 18 Abs. 1 InvStG). The base rate (Basiszins) is published each year by the BMF — 2.29 % for 2024, 2.53 % for 2025.
- The cap: the base return is limited to the fund's actual rise in value over the year (price gain plus distributions). If the fund fell in value, the Vorabpauschale is 0.
- Less distributions: whatever the fund already paid out during the year is subtracted. The Vorabpauschale can never go negative.
Purchase year and accrual
In the year you buy, the Vorabpauschale is reduced pro rata — by 1/12 for each full month before your purchase month (§ 18 Abs. 2 InvStG). Buy in March and January and February drop out.
The accrual date matters: a given year's Vorabpauschale is deemed to accrue only on the first working day of the following year (§ 18 Abs. 3 InvStG). So the 2024 Vorabpauschale belongs on your 2025 return, not 2024 — a common mistake.
Teilfreistellung (partial exemption)
As with all fund income, part of the Vorabpauschale is tax-free up front (§ 20 InvStG): equity funds 30 %, mixed funds 15 %, property funds 60 %, foreign-property funds 80 %. Which rate applies depends on the fund type per its prospectus (Anlagebedingungen). You set it in capi.tax, because the broker data does not state it.
The catch with US brokers
Interactive Brokers and Tastytrade withhold no German tax and usually do not include the year-start and year-end redemption prices the calculation needs. You have to supply those, for example from the fund company. And take care: many US-domiciled ETFs are still investment funds under the InvStG — "US ETF" does not mean "no Vorabpauschale." All of this is declared on Anlage KAP-INV.
capi.tax prepares your data and is not tax advice. Please review the figures and ask a tax advisor (Steuerberater) about your personal situation.