Key Post The taxation of dividends from German companies

Brendan Burgess

Brendan Burgess

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Update ; Sept 2024. I am updating this based on S Class's work and my own experience.
I will try to do an Idiot's Step by Step Guide on how to reclaim the tax.


When you get a dividend from a German company through your Irish stockbroker, you should get a dividend certificate as follows:

1727193879574.png

The German tax of 26.375% is based on 2023 dividends. I think this rate has been different in the past.

On your tax return, you declare a gross income of €100 and pay Income Tax, USC and PRSI on that as normal, but you claim credits as follows:

On your Irish Tax Return
  • You get the encashment tax of €17.375 back in full
  • You can claim 15% or €15 as a credit
So the total tax reclaimed on your Irish tax return is €32.375

You can reclaim some more from the German Revenue

1727193995938.png

I don’t know where the figure of 26.375% came from – it’s an Income Tax and a Solidarity Tax.

I don’t think you get the full 11.375% back. They don’t give you the Solidarity Tax.

To claim the German tax - Work in Progress

See below for links and detailed instructions.

You must claim it by the end of the fourth calendar year following that in which the dividends and/or interest have been received.

So for Dividends received in 2020, the claim must be submitted by the end of 2024.
 
Last edited:
Wonderfish said:
It appears that from Jan 1st 2023 there is now no need to send the paper forms when submitting a claim. I am about to start this process now and wondering if anyone has done it digitally already?

Electronic filing procedure

Data Medium Procedure
www.bzst.de www.bzst.de
Click to expand...

Hi Wonderfish,

Did you get to submit your claim electronically?
In previous years, I have applied by paper form. I am trying to do an electronic submission now.
When I follow the link to electronic filing, it brings me to a page where I need to set up an Elster account.
Elster seems to be a German government site for filing tax returns - https://stripe.com/ie/resources/more/elster-germany
I have tried to set up an account with Elster, but it is asking me for a BZSt number, a "shared secret" etc. I have no ideas what these are.
Has anyone an idea what these may be / how to set up an Elster account / how to electronically submit an application to claim back German withholding tax.

Thanks in advance for any help.
 
I managed to set up the Elster account. I submitted the electronic tax reclaim form in August 2023. The tax reclaim is showing as submitted and received in Elster but I have not received any further replies from the German Revenue.
 
When you begin the application you get an email as below
This email contains the BZSt secret (password)
Your BZSt number is sent by post.



Dear Madam, dear Sir,

You (name) have expressed interest in authenticated data communication via the BZStOnline portal (BOP).

Registration in the BOP takes place in the following steps:

1. The BZSt will send you a secret value by email.
2. The BZSt will send you a BZSt number by post.
3. You begin your registration in the BOP on the website
https://www.elster.de/bportal/registrierung-auswahl with the creation of a user account and the entry
the required data in the BOP.
4. You will receive an email to verify your email address. Confirm the link contained therein.
5. The BOP will send you an activation ID for the user account set up for you by email.
6. The BZSt will send you an activation code for the user account set up for you by post.
7. You activate your user account in the BOP via the activation ID in the email you received
submitted link. The activation ID and activation code are entered there.
8. You will receive a certificate from the BOP that you can use to log into your user account.

You are currently at step 1 and will receive the secret value in this email.

Your BZSt secret is: *********

Please keep this email.



Best regards

Federal Central Tax Office
 
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Thanks S class. How did you begin the application? Could you post a link.
When I try to set up an account with Elster, it asks me for a BZSt number etc on the application page.
How did you get them to send you the BZSt number etc?



S class said:
When you begin the application you get an email as below
This email contains thec
Your BZSt number is sent by post.



Dear Madam, dear Sir,

You (name) have expressed interest in authenticated data communication via the BZStOnline portal (BOP).

Registration in the BOP takes place in the following steps:

1. The BZSt will send you a secret value by email.
2. The BZSt will send you a BZSt number by post.
3. You begin your registration in the BOP on the website
https://www.elster.de/bportal/registrierung-auswahl with the creation of a user account and the entry
the required data in the BOP.
4. You will receive an email to verify your email address. Confirm the link contained therein.
5. The BOP will send you an activation ID for the user account set up for you by email.
6. The BZSt will send you an activation code for the user account set up for you by post.
7. You activate your user account in the BOP via the activation ID in the email you received
submitted link. The activation ID and activation code are entered there.
8. You will receive a certificate from the BOP that you can use to log into your user account.

You are currently at step 1 and will receive the secret value in this email.

Your BZSt secret is: *********

Please keep this email.



Best regards

Federal Central Tax Office
Click to expand...
 
Here's a concrete example from my modest investment in SAP based on the 2023 dividend

Number of shares
80​
Dividend per share
€ 2.05​
Gross dividend
€ 164.00​
German withholding tax (25% + 5.5% solidarity surcharge of tax)
€ 43.26​
Net dividend received in my brokerage account
€ 120.74​
Irish tax return (Form 11)
Gross dividend
€ 164.00​
Tax due at marginal rate (40% in my case)
€ 65.60​
Credit for German withholding tax as per double taxation treaty 15%
€ 24.60​
Irish tax due
€41.00​
Tax deducted on behalf of German Tax authority
€ 43.26​
Maximum tax allowed by double taxation treaty 15%
€ 24.60​
Tax reclaimable from German Tax Authority
€ 18.66​

However, I can't be bothered with all the paper work to reclaim the € 18.66 - but if it was a more significant amount, I certainly would even given the long delays reported
 
Guys. My new year's resolution is to actually claim this money from the Germans. I gave up in frustration years ago. I will write a new Key Post to set it out in Step by Step Order as I go through it to make it as easy as possible to follow .

Step 1 - you must apply for a BZT number
https://www.bzst.de/SiteGlobals/Kontaktformulare/EN/Capital_Yield_Tax_Relief/BOP/kontakt_node.html

It says

Please note:
As part of the registration process, you must send an e-mail (Kapitalertragsteuer@bzst.bund.de) with a copy of your passport or ID card. You may also send a copy of a commercial register extract if you are acting on behalf of a legal person
I have no idea if I am supposed to do that now or are they just telling me that at some stage they will require my passport. Should I just email these guys the passport now? It's very odd that they don't ask you to upload it as part of the application.

I didn't send the passport yet. But filled in the form and pressed send and got

Contact confirmation

Thank you for your message. It has been sent successfully.

I subsequently just emailed them my passport.
 
OK, so I got an email back today

Dear Sir or Madam,

You (Burgess, Brendan) have shown interest in authenticated data communication via the BZStOnline portal (BOP).

Registration in BOP is carried out as follows:

1. The BZSt sends you a secret code by email.
2. The BZSt sends you a BZSt number by post.
[ Presumably - When you get the BZSt number by post go to step 3 ]
3. Start your registration in BOP on the
https://www.elster.de/bportal/registrierung-auswahl internet page by creating a user account and entering
the required data in BOP.
4. You will receive an email for the verification of your email address. Please confirm the link in the email.
5. BOP sends you an email with the activation ID for the created user account.
6. The BZSt sends you letter with the activation code for the created user account.
7. Activate your user account in BOP via the link in the email with the activation ID.
The activation ID and activation code are entered there.
8. BOP sends you a certificate which you can use to log in to your user account.

You are currently in Step 1 and receive the secret code with this email.

Your secret code is: [deleted]

Please keep this email for future reference.

Kind regards

Federal Central Tax Office
 
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I am at Step 1 in that I have received a secret code. Keep a note of this as you will need it in Step 2.

I presume that I don't do anything until they send me a letter with the BZST number.

I followed the link in the letter and it asks me for my BZST number, so that suggests that they are going to post it to me.
 
Last edited:
Brendan Burgess said:
1. The BZSt sends you a secret code by email.
2. The BZSt sends you a BZSt number by post.

3. Start your registration in BOP on the
Click to expand...

1) is very clear
2) is very clear

The ambiguity comes to 3)
Do I start it now?
Or do I wait until I get the BZSt number?

They could make it clear by saying "When you get your BZSt number by post, go to Stage 3"

The purpose of this thread is to help others follow the process and remove all the ambiguity.
 
I have the letter with my BZST code now. ( I got it about a week ago)

I clicked on and get this

1730366836186.png


I will try Login Options
Nothing happens. This seems to be just telling me the process.
I will click on Further

1730366888725.png


I will choose certificate file

I get a screen to enter personal data and the BZST number from my letter


Now I get this

1730367030304.png




This is the Secret Code I got by email when I started this process.

I presume I pick BZ Secret?
 

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That is all good.
Now they ask me to check my details

Now I am to check my email to verify it I assume?
So I have a long email in German
Sehr geehrte(r) Mein BOP Benutzer(in),
bitte bestätigen Sie den Erhalt dieser E-Mail durch Klicken auf den folgenden Link:

[ Link removed] I assume they are just asking me to click on this link to confirm.

Wichtiger Hinweis: Bitte beachten Sie, dass die Registrierung nur dann fortgesetzt werden kann, wenn nach dem Klicken auf den Link vom Browser eine positive Rückmeldung angezeigt wird. Der Link ist bis zum 07.11.2024 um 10:43 Uhr gültig.

Vielen Dank!
Mit freundlichen Grüßen


So I clicked on this link and got

1730368010934.png


So now I am getting two more bits of information.

There is a long email - and a button on the top which says "Translate into English" - This was not on the other email.
 
Dear Mr. Burgess,

Thank you for registering with BOP.

With this email you will receive the personal activation ID for your user account in My BOP.

You will need the activation ID for the second step of registration together with the activation code, which you will receive separately by post. Therefore, please keep this email until you receive the letter with the activation code. The address stored for your BZSt number will be used to send you the activation code.


Username: xxxxx
Activation ID: xxxxxx


After you have received the letter with your personal activation code, please follow the next step of registration at
https://www.elster.de/bportal/aktivierung/JB0

Please note that registration in My BOP must be completed by February 8, 2025. Otherwise, the activation data will become invalid from this point onwards.

If you have not received a letter with an activation code within 14 days, please contact the BZSt, stating your BZSt number, the above-mentioned user name and your telephone number.
If you register from abroad, delivery may be delayed due to longer postal delivery times.

You will need the security question that you selected and answered when entering your personal data to delete your user account. You should definitely delete your user account if you suspect misuse. Please remember the information on the security question and keep it safe.

Best regards

Your Federal Central Tax Office
 
It is really energy sapping.
I had cleared my desk and my headspace today to apply for this refund.
But now I have just done another stage of registering.
And have to wait until I get another letter.

So be it.
 
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