Monday, September 25

Exemption order: what it means – and why it is so important

Exemption order: where and how you apply for it

You can apply for an exemption from your bank, savings bank or wherever you have invested your money. As a rule, every bank offers a form for this, which all you have to do is fill out and submit. Unless you choose otherwise, the exemption order is valid for one calendar year. But you can also issue it indefinitely.

If you have accounts with several banks, you have to issue an exemption order to each of them and distribute the tax exemption between the banks. This means that you have to estimate beforehand how much profit you will make and where. The annual deposit check, for example, is also suitable for this purpose.

Example: If you expect more income from your shares than from your savings book, you should state a higher amount in the exemption order to the bank with which you have the deposit.

Notice: You don’t have to worry about paying taxes to the tax office yourself. Your bank will do this automatically and you will be paid out the profit after tax. That is why an exemption order is so important, otherwise you will have to laboriously recover the taxes you have paid too much.