Should the capital tax be eliminated

The cheaper test in Appendix KAP

This is intended to remedy an injustice that arose as a result of the change in the legal situation from 2008 to 2009 to the detriment of the taxpayer.

The tax office only carries out the cheaper check for capital income after entry - i.e. by placing the cross in Line 4 - carried out.

What exactly is a cheaper test?

Tax law knows a cheaper test for different reasons. As part of the Riester pension, the tax office does this automatically, for example, in order to decide whether it is more favorable, i.e. financially advantageous, for the taxpayer if the state grants tax reductions instead of direct subsidies.

If the cheaper test for capital income is carried out, the tax office checks whether it is financially more advantageous if the taxpayer does not meet his tax liability via the final withholding tax, but includes the income in his regular income.

When is the cheaper test worthwhile?

The cheaper test is always worthwhile if the sum of the taxes from the final withholding tax on capital income and wage or income tax on other income is higher than the wage and income tax on all income - i.e. including capital income. As a guide you can use a Marginal tax rate view from 25 percent.

If you pay this or more, the cheaper check is an advantage and should therefore be carried out by the tax office. For single this value is already reached from a taxable income of 15,700 euros.

  • Got investment income from different sources generated, it is often the case that it would have the most beneficial effects in the tax return if one were allowed to include some in the normal tax rate, but others continue to be paid through the withholding tax. However, the legislature has put a stop to this variant: The test is either carried out for all income from capital assets or not at all.

Married couples must submit the KAP annex twice

Married couples must always attach the KAP to their tax return double submit. This also applies if you only have to make one tax return because they are assessed together.

In this case, the income is calculated collectively, but the office must nonetheless use the duplicate annexes to identify the exact sources of the related investment income check can.

If a partner has not achieved any investment income, he has to hand in an empty investment that only identifies him as the person who made the declaration.

Individual evidence


  1. Income Tax Act (EStG) § 32d Separate tax rate for income from capital assets →
  2. Laws on the Internet: Income Tax Act (EStG) § 43 Investment income with tax deduction →

Exclusion of liability: Despite careful examination, we assume no liability for the completeness, correctness or topicality of the information presented here. No services will be assumed that are reserved for professionals in accordance with the StBerG and RBerG.