Saver lump sum

The saver lump sum is an exemption under the German Income Tax Act , which exempts capital income (e.g. income from interest and dividends) up to 801 euros per year as part of the individual assessment or 1602 euros for jointly assessed persons.

definition

Quotation from Section 20 (9 ) of the EStG : “When determining income from capital assets , an amount of 801 euros must be deducted as income -related expenses (saver flat- rate amount); the deduction of the actual advertising expenses is excluded. Spouses who are assessed together are granted a joint saver lump sum of 1,602 euros. Half of the common saver lump sum is to be deducted from each spouse when determining income; are the investment incomeof one spouse is lower than 801 euros, the proportionate saver lump sum is to be deducted from the other spouse to the extent that it exceeds the investment income of this spouse. The saver lump sum and the common saver lump sum may not be higher than the investment income offset in accordance with paragraph 6. "With the current structure of the saver lump sum, gains and losses on the sale of securities are taken into account for tax purposes.

history

A speculation period of six months was in effect for capital investments until 1999 , which was temporarily increased to twelve months, but was lifted again on January 1, 2009. Business expenses related to the capital income generated could be taken into account. It is z. B. the expenses for advice, financing and asset management or the travel expenses to a general meeting.

Development of the saver tax credit / saver lump sum since 2002
Period	Allowance per person	Flat rate for advertising expenses	comment
2002-2003	1,550 €	€ 51	Savers allowance plus flat rate for income-related expenses
2004-2006	€ 1,370	€ 51
2007-2008	750 €	€ 51
since 2009	€ 801		Saver lump sum

Since January 1, 2009, private investment income has been subject to the withholding tax . In this context, the previously applicable saver allowance of 750 euros and the flat-rate income-related amount of 51 euros have been abolished and replaced by the saver flat-rate amount of 801 euros. The saver lump sum is regulated in Section 20 (9) EStG. Accordingly, when determining the income from capital assets, a lump sum of 801 euros must be deducted as income-related expenses. For spouses who are assessed together, the amount increases to 1,602 euros. Any further deduction of advertising costs is excluded.

Constitutional assessment

The question of whether the saver lump sum is constitutional is currently being clarified in court. The Finance Court of Baden-Württemberg ruled in December 2012 (Az .: 9 K 1637/10) that the actual income- related expenses must at least be taken into account in full if the personal tax rate is below 25 percent. The tax authorities appealed against the judgment to the Federal Fiscal Court.

For the constitutional assessment of the saver lump sum, the net principle is decisive. Accordingly, the income generated is not gross, but reduced in order to tax the related acquisition costs. The fact that advertising expenses can only be deducted as a lump sum as part of the saver's lump sum therefore represents a deviation from the net principle. However, it is disputed whether there is an objective reason to justify this deviation. In 2008, the legislature pointed out that the final withholding tax also had positive effects such as tax simplification. For some authors, however, this was not a sufficient justification.

Reform proposals

The starting point for reform proposals is often the particular susceptibility of financial assets to inflation, which the Federal Constitutional Court also found in its rulings in 1991. In order to adequately take into account the inflation-related loss of assets in taxation, it is proposed, among other things, to increase the saver lump sum and adjust it regularly to the inflation rate . Furthermore, the deduction of the actual advertising expenses should also be permitted again.

In the course of the discussion about the planned introduction of a financial transaction tax , the FDP called for the saver lump sum to be increased to compensate for the expected cost burden.