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Tax-free share of partial income
Tax-free share of partial income
Enter here tax-free income that is subject to the partial income method.
60% of the income and capital gains from investments in corporations (e.g. stocks, shares in limited liability companies) are taxable, as are 60% of the associated income-related expenses. The partial income system applies instead of the withholding tax for significant investments (e.g. business assets or significant private investments).
Shareholdings in business assets: Dividends and other distributions (60% taxable) must be declared in Form G or S. The tax-free share is 40% (sect. 3 no. 40 of the Income Tax Act (EStG)).
