Do I have to take the advance lump sum into account?

From the point of view of the tax authorities, the advance lump sum represents a minimum taxation of accumulating funds based on the interest on federal securities with annual coupon payments and a remaining term of 15 years. It amounts to 70% of the so-called base interest rate for one year multiplied by the redemption price of the fund units at the beginning of the calendar year. It is capped at the actual (positive) performance of the redemption price of the fund units, taking distributions into account.

The advance lump sum is only a notional income that is deemed to have accrued at the beginning of the following year. There is no actual inflow in the form of a distribution or other payment.

The base interest rate is published annually by the Federal Ministry of Finance and is based on statistical surveys by the Deutsche Bundesbank. For 2024, the prime rate is 2.29% and the advance lump sum for 2024 is deemed to have been received at the beginning of 2025, i.e. it is only to be taken into account for the 2025 tax year. The advance lump sum must therefore be taken into account.

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