Action required by investors
Tax on advance lump sum is due
The new Investment Tax Act has been in force in Germany since January 1, 2018. The investment tax reform introduced the so-called advance lump sum, which was applied for the first time in January 2024 for the calendar year 2023 due to the positive interest rate development.
In January 2026, the advance lump sum will therefore be levied again for the past year 2025.
The advance lump sum is a fictitious taxable income without the investor actually receiving any income. With this regulation, the legislator wants to ensure that the increase in value of an investment fund is taxed (promptly) at a minimum amount, even if there is no or only a small distribution. In principle, however, all domestic and foreign investment funds and ETFs may be affected by the advance lump sum, although the main case of application should be accumulating funds.
We cannot yet say whether and to what extent a flat-rate advance payment will be due. The flat-rate advance payment will be calculated on the basis of the securities account balance as of December 31, 2025, and can only be determined on the basis of the fund companies' year-end data.
Further information on the flat-rate advance payment can be found in our OnePager.
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Important information
The above statements by ABN AMRO Bank N.V. Frankfurt Branch (hereinafter referred to as “Bethmann Bank”) are based on the information provided to Bethmann Bank and the legal and tax regulations applicable at the time of preparation.
The tax treatment depends on the personal circumstances of the respective customer and may be subject to change in the future. Changes in tax treatment may also apply retroactively.
Future changes in legal and tax regulations that may lead to a different assessment and other recommendations are not taken into account in this document.
Bethmann Bank is not obliged to notify customers of such future changes.
Bethmann Bank generally accepts no liability for errors in the accuracy, completeness, and timeliness of this document, including all calculations, unless such errors were caused by Bethmann Bank intentionally or through gross negligence.
Bethmann Bank also accepts no responsibility for the occurrence or non-occurrence of the results or consequences described in this paper, particularly in economic, tax, or legal terms.
Bethmann Bank does not provide tax or legal advice.
The final assessment of the legal and tax issues associated with the concept is therefore the sole responsibility of the customer's personal lawyer or tax advisor.
Bethmann Bank expressly recommends seeking the advice of a tax and legal advisor in this regard.
This document is intended exclusively for customers who are not resident in the USA and are not US citizens, and may not be distributed in the USA or to US citizens.
A summary of investor rights in German, in particular information on the principles and procedure of the complaint process, as well as information on the ombudsman procedure and the European Online Dispute Resolution platform, can be found on our websitehttps://www.bethmannbank.de/de/footer/rechtliche-hinweise.htmlenthalten
This document may not be reproduced or passed on to third parties without the prior consent of Bethmann Bank.
As of: December 2025
Publisher: ABN AMRO Bank N.V. Frankfurt Branch
All rights reserved.