Apply for a refund of withheld capital gains tax for non-resident persons

If you are a foreign recipient (creditor) of domestic investment income, you can be wholly or partially exempt from capital yields tax under certain circumstances.

The Federal Central Tax Office (BZSt) shall refund the withheld and remitted capital gains tax that exceeds the provided withholding tax rate under the country-specific double taxation treaty to be applied, or that is to be refunded pursuant to Sections 43b or 44a (9) of the Income Tax Act (EStG).

The refund procedure is only applicable to certain domestic investment income subject to withholding tax.

The refund of capital gains tax can be excluded for certain types of capital income (for example, in the case of profit participation rights [Genussrechte] or claims from profit-sharing arrangements) or in the case of shell companies or companies lacking substance. This provision is thus directed against tax arrangements that attempt to achieve relief from capital gains tax by exploiting treaty or directive benefits.

You submit your application in writing using the official form to the Federal Central Tax Office (BZSt).
 

You must submit the application for reimbursement of capital gains tax in writing to the Federal Central Tax Office (BZSt), Unit St I B3.

• Download the application from the BZSt website or directly from the Federal Central Tax Office's forms server. Fill out the application electronically. Print it out and sign it.
• Send the application and all documents by mail to the official seat of the BZSt in Bonn.
• Your application is being processed and reviewed by the BZSt.
• In the event of approval, you will receive a written notice of exemption and refund by mail.
• By means of a previously issued exemption certificate, you can in certain cases avoid the tax deduction on capital yields from the outset or claim a reduced tax rate.

The statutory application period is 4 years after the end of the calendar year in which the capital gains were paid. However, this period does not end before the expiration of 6 months after the time the tax was paid.

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Note:
The reimbursement procedure at the BZSt is free of charge. Obtaining the required documents (for example, a tax certificate from the custodian bank at the last domestic paying agent) may involve costs for the applicant. The BZSt has no influence over this.
 

Section 50c paragraph 3 of the Income Tax Act (EStG)

• Objection
• action before the finance court