In 2023, the saver's allowance increases by around 25 percent. What does this mean for investors, and what happens now to exemption orders? Five questions and answers.
What exactly is the saver's allowance?
Since 2009, income from investments such as interest, dividends and gains from selling shares has been subject to a flat 25 percent withholding tax. On top of that come the solidarity surcharge and, where applicable, church tax. Up to the amount of the saver's allowance, however, such income is exempt from taxation. In return, expenses connected with capital income may not be claimed as income-related expenses. So as not to have to reclaim overpaid income taxes later via their tax return and then possibly reinvest them, investors can issue an exemption order, for the full allowance or a portion of it if they invest money in several places.
What changes in 2023?
At the start of the year, the saver's allowance increases from €801 to €1,000. For jointly assessed partners, double the rate applies, namely €2,000 instead of the previous €1,602.
What happens to exemption orders that have already been issued?
If you claim the saver's allowance in full at quirion via an exemption order, you don't need to worry about anything: the saver's allowance is automatically adjusted to the new values. If your exemption volume is below that, the exemption order is increased by 24.844 percent*, that is, by the amount of the increase in the saver's allowance.
And what if I haven't issued an exemption order yet, or want to change something?
A prerequisite for the exemption is being assessed for tax in Germany. At quirion, you can submit or adjust an exemption order in your client account under "Settings" and there in the "Exemption order" menu item. If you have any questions, simply call us at 030-89 201 400 or send us an email at info@quirion.de. For specialist tax questions, please contact your tax adviser.
What does the change bring for investors?
Building wealth and investing make sense entirely regardless of tax considerations. With the increase in the saver's allowance, however, the scope for participating tax-free in income from investments expands. But the right time to think about investing is "always now", at least at quirion.
More on the right time to invest read here.
*The factor is 1000/801 = 1.24844
