Please note that the following answer only applies to clients residing in Germany.
A child can have up to €13,384 tax free income* per year, which consists of three components:
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€1,000 saver’s tax allowance: This can be activated by instructing a tax exemption order (Freistellungsauftrag) directly in the Scalable app. To do this select the account you want to manage under Profile > Tax exemption order in the app and Profile > Taxes > Tax exemption order in Web.
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€12,348 basic tax allowance: This can be achieved by submitting a non-assessment certificate (NV-Bescheinigung). Once you have received your non-assessment certificate from your tax office, please send a copy of the document to:
Scalable Capital Bank GmbH
Seitzstraße 8e
80538 Munich
Germany - €36 special expense tax allowance
Tax benefits mentioned only apply to Kids’ accounts in Germany.
If a tax exemption order (Freistellungsauftrag) has been submitted, the custodian bank will not withhold the otherwise due capital gains tax on capital gains until the maximum of €1,000 has been reached. When a non-assessment certificate (NV-Bescheinigung) is filed, no taxes will be withheld.
* Scalable Capital does not provide tax advice. Tax treatment is individual and can change. Assumption: €1,000 saver’s tax allowance, €12,348 basic tax allowance and €36 special expense tax allowance, capital gains tax: 25%, solidarity surcharge: 5.5%, church tax: 9%.