Fixed-term deposits abroad - tax aspects
Sutor Bank is the partner bank of various interest rate portals. As a service partner, we take care of the accounts and the transfer to the product banks in Germany and abroad in the background. This also includes tax aspects: For example, withholding tax is also due on foreign interest income. In addition, many foreign countries levy a so-called source tax on interest payments to foreign investors.
Withholding tax also applies to foreign interest income
If you are resident in Germany, you must also pay tax here on income earned abroad. The decisive factor is tax residency.
As income from capital assets, interest income is subject to withholding tax of 25 per cent plus solidarity surcharge. For church members, the tax burden is increased by the church tax. Interest income of less than EUR 1000 for single people and EUR 2000 for married couples remains tax-free. This saver's allowance can be split between individual banks. If you have more than one account or several investments with Sutor Bank, one exemption order is sufficient for these.
Source tax applies abroad
Many foreign countries charge their own source tax on interest payments to foreign investors. The Federal Republic of Germany offsets up to 15 per cent foreign tax on source against the 25 per cent withholding tax due in Germany - the investor therefore only pays the missing ten per cent in Germany. This tax is automatically offset by Sutor Bank.
Any additional source tax paid and not creditable is shown in an annex to the annual tax certificate.