The Federal Central Tax Office is responsible for the refund procedure in accordance with section 16 AO in conjunction with section 5 (1) sentence 1 no. 2 FVG.

The German Fiscal Code is the relevant law for questions relating to the concept of non-profit status under tax law. The relevant provisions on non-profit status can be found in sections 51 to 68 of the German Fiscal Code. For example, section 52 of the German Fiscal Code regulates which purposes are recognized as charitable and section 60 of the German Fiscal Code regulates the requirements for articles of association.

The Federal Central Tax Office checks whether the applicant organization meets the requirements for charitable status as defined in the Tax Code.

Non-profit corporations, associations of persons or funds with limited tax liability domiciled abroad that are creditors of domestic investment income to which the income is economically attributable at the time of receipt are entitled to file an application. The applicant therefore does not necessarily (also) have to be the creditor of the investment income under civil law. In addition, the requirements of section 5 (1) no. 9 KStG must be met. The determination of non-profit status is based on sections 51 to 68 of the German Fiscal Code.

Refund applications may be filed by non-resident taxpayers who are the beneficiaries of income from capital at the time when the income is accrued.or by an authorized representative (see section 80 AO). The authorized representative must provide proof of legal authority to act on behalf of the creditor with limited tax liability in the tax administration procedure by means of a power of attorney.

The deadline for the refund application is based on Section 32 (6) sentence 5 KStG in conjunction with Section 50c (3) sentence 2 EStG. Refund applications must be submitted within a period of four years after the end of the calendar year in which the capital income or remuneration was accrued.

For capital income accrued up to and including 8 June 2021:

The period for submitting applications ends no earlier than six months after the date when the tax was paid (section 50d (1) sentence 10 of the Income Tax Act, old version).

For capital income accrued on or after 9 June 2021:

The period for submitting applications ends no earlier than one year after the date when the tax was paid (section 50c (3) sentence 2, second half-sentence of the Income Tax Act).

In principle, the deadline does not end before the expiry of a more favorable application deadline provided for in a double taxation agreement.

For applications in the refund procedure for tax on investment income in accordance with section 32 (6) KStG, the obligation to submit applications electronically in accordance with the officially prescribed data set via the officially specified interface applies (see section 32 (6) sentence 5 KStG in conjunction with section 50c (5) sentence 1 in conjunction with section 50c (5), sentence 1 KStG, section 50c (5) sentence 1 in conjunction with section 52 (47a) sentence 2 EStG).

According to section 34 (10a) KStG, section 32 (6) KStG must be applied in all open cases.

If you have not yet applied in accordance with section 50c EStG, the application in accordance with section 32 (6) KStG must be submitted together with the application in accordance with section 50c EStG via the BZSt online portal. Unfortunately, the application in accordance with section 32 (6) KStG can currently only alternatively be displayedelectronically.. You can find the form in the BZSt online portal under the Forms & Services – “All Forms” tab on the left-hand side and then in the middle of the page under “Tax International” - Capital Gains Tax Relief under the heading "Application for reimbursement or exemption of investment income in accordance with section 50c or section 44a (9) of the Income Tax Act". Please complete the form according to your details. At the end of the form there is a free text field in which the following sentence is to be entered: "I would also like to submit an application in accordance with section 32 (6) KStG."

The form currently does not contain any specific questions on the application in accordance with section 32 (6) KStG. To ensure that your application is processed quickly, it is helpful if you submit the questionnaire on non-profit status and the documents listed therein via the document submission function in the BZSt online portal following the application.

All other necessary information on the electronic application procedure and the BZSt online portal can be found on the BZSt website.

For all applications already submitted on time in accordance with section 50c (3) EStG, which have not been proceeded conclusively, the application can be extended to include the basis for the claim in accordance with section 32 (6) KStG by means of an informal letter sent by post or email (to Kapitalertragsteuer@bzst.bund.de). The informal letter should contain the following information:

• Subject - section 32 (6) KStG;
• Name and address;
• Application date/ transfer ticket number if applicable/ registration number of the application pursuant to section 50c EStG if applicable.

To ensure that your application is processed quickly, it is helpful if you also send the questionnaire on non-profit status and the documents listed therein.

These are two separate bases for claims and therefore legally two applications and two administrative decisions. From an administrative point of view, however, the applications must be submitted together, as the prerequisite for section 32 (6) KStG is that no reduction of the capital gains tax to zero is provided for under other provisions (e.g. section 44a (9) EStG, section 50c EStG).

For all applications already submitted on time in accordance with section 50c (3) EStG, which have not been proceeded conclusively, the application can be extended to include the basis for the claim in accordance with section 32 (6) KStG by means of an informal letter sent by post or email (to Kapitalertragsteuer@bzst.bund.de), provided the application deadline has not yet expired. The informal letter should contain the following information:

• Subject - section 32 (6) KStG;
• Name and address;
• Application date/ transfer ticket number if applicable/ registration number of the application in accordance with section 50c EStG if applicable.

To ensure that your application is processed quickly, it is helpful if you also send the questionnaire on non-profit status and the documents listed therein.

The following documents must be submitted:

• Mandatory in German:
  • Questionnaire on non-profit status
  • Articles of association (for associations/foundations or similar), foundation deed or other constitution, articles of association or cooperative agreement (for limited liability companies, cooperatives or stock corporations) or act of establishment (for public corporations)
  • Extract from the register (association, GmbH, cooperative, public limited company, foundation)
  • Official confirmation of the non-profit status of your own state
  • activity report or comparable evidence
  • statement of income and expenditure or cash reports
  • balance sheet with evidence of the formation and development of reserves
  • board minutes and minutes of members' or shareholders' meetings
  • Evidence of support for (natural or legal) persons residing in Germany or evidence that the activity promotes the reputation of the Federal Republic of Germany
• In German or English language:
  • Questionnaire § 50d paragraph 3 EStG
  • Certificate of residence
  • Tax certificate
  • Power of attorney, if applicable

The documents do not have to be submitted in the original. In the case of a subsequent application, copies of the documents can be submitted by post or email (to Kapitalertragsteuer@bzst.bund.de). When applying electronically, the documents must be uploaded via the BZSt online portal. In individual cases, however, original documents may be requested during application processing.

Applicants must prove their residence status with a verification from the tax authorities that have jurisdiction for them at the time when the income from capital accrues.

On the certificate of residence, the tax authority must confirm that (a) the applicant’s place of residence, habitual abode or management at the time when the capital income was accrued matches the information provided by the applicant in the refund application and (b) the applicant is therefore covered by the relevant agreement / had their registered office there / is an eligible applicant under section 43b of the Income Tax Act.

Please upload the residence certificate to the online portal when you file your refund application.

In certain cases, the German tax authorities may request submission of the original certificate of residence.

A tax certificate serves as proof of:

• the type of income from capital
• the amount of income from capital
• the amount of capital income tax withheld and
• the amount of solidarity surcharge withheld

Tax certificates are issued by domestic (i.e. German) paying agents. Under section 44 (1) sentence 4 no 3a of the German Income Tax Act, paying agents are

1. German banks and financial services institutions and
2. German securities institutions

that manage shares or hold them in safe custody and that disburse/credit the income from capital or disburse the income from capital to a foreign entity.

A credit advice (such as a dividend statement) from a (foreign) custodian bank does not qualify as a tax certificate.

Yes, an abuse test in accordance with section 50d (3) EStG is also carried out as part of the test in accordance with section 32 (6) KStG, which follows from sentence 2 no. 2.

In general, applications are processed in the order received.

An application cannot be processed until all documentation has been submitted in full. The required documentation is specified in the relevant application form and the related instructions for filling out the form.

In the course of processing an application, the Federal Central Tax Office may request further documentation or information on a case-by-case basis.

The high volume of applications received may lead to longer processing times. To avoid further delays, the Federal Central Tax Office does not respond to status queries.