Custody account transfers 2023
Custody account transfer
There may be many reasons for switching custodian banks. In many cases, switching premiums or lower fees are an enticement to switch. In addition to the other formalities, a securities account transfer regularly has income tax consequences that must be recorded in detail. Particular attention must be paid to the fact that switching premiums must be recorded as other income (Section 22 No. 3 of the German Income Tax Act/EStG). However, such premiums rarely lead to a tax liability in view of the tax-free amount of € 256.00.
Change of creditor
The transfer of a securities account is less problematic if the holder of the securities account remains the same. The former bank must notify the new bank of the acquisition costs for the transferred securities. However, this only applies to the extent that the securities account transfer takes place among domestic banks. A transfer of securities accounts with a change of creditor is more problematic. This regularly leads to a fictitious disposal transaction with the consequence that the previous price gains are subject to withholding tax. No taxes are levied only if the custodian bank is notified that the securities account transfer is a gift. In these cases, the custodian bank reports the change of custody account to the tax authorities (section 43(1) sentence 6 EStG). These regularly check whether there is a gift tax liability.
Substitute assessment basis
If a change of custody account results in a loss of the acquisition costs of the individual securities transferred, the new custodian bank applies the so-called substitute assessment basis when selling the transferred securities. According to this, 30% of the sales proceeds are deemed to be fictitious income, which is subject to the final withholding tax. A 30% capital gain is rare. Excessive tax deductions by the new bank can only be taken into account in the income tax return by the investor proving the acquisition data to the tax office and determining the actual capital gain himself.
Status: February 23, 2023
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