Fund preliminary lump sum

The preliminary lump sum was introduced with the reform of the German Investment Taxation in 2018 for investors in fund units. It is intended to ensure the amount of tax revenue after the deemed distribution income ceases. It is calculated annually at the beginning of the tax year based on the performance of the past year. It is aimed to charge the investor an income tax of at least a risk free market interest.

WM Datenservice determines not only for capital growth investment funds a preliminary lump sum, but for all forms of investments under the scope of the Investment Tax Law 2018. If the fund has distributed a sufficient amount or if its performance was negative in the past year, the lump sum will include a zero identifier. The determined value is shown both in the currency of the investment fund and in euro. In exceptional cases, no preliminary lump sum can be determined, WM then publishes "not determinable".

The investor does not have to pay any preliminary lump sum for investment units sold during the relevant calendar year. For units acquired during the year, 1/12 of the full preliminary lump sum is applied per month of the holding period. The calculated taxable lump sum is effective as of the first working day of the following calendar year and is, if applicable after considering the partial exemption, subject of the withholding tax. The preliminary lump sums that have already been taxed must be deducted from the tax upon sale.

The wmView query profile (E) Income contains, among other data, the calculated preliminary lump sum in euros or in fund currency. The following screenshot shows a detail display with the lump sum data for the ISIN LU0311982671.

Identification of preliminary lump sum in the income announcements

Use one or more of the following data in the search function to filter out the results for the preliminary lump sum:

• ED004A Dividend proposal with value 13 (Preliminary lump sum)
• ED005 Div. payment type with value 59 (Preliminary lump sum)
• ED006 Dividend type with value 09 (Preliminary lump sum)

Exclusion of cancelled income reports

Use ED001 (Payment status), as shown in the following screenshot, to exclude cancelled income announcements. This field is included in the expert search.

Query of the preliminary lump sum for several ISINs

An additional tip is to search via portfolio-related queries. The search results are limited to the relevant investments for the user.

On WMACCESS Internet, the data for the preliminary lump sum, including the partial exemption and base income, are displayed in different query profiles.

• The query profile (E) Income contains the relevant fields for the preliminary lump sum and partial exemption
• The fields for the adjustment of the sale result are assigned to the query profile (I) Investment fund prices
• A classification if an investment fund has a partial exemption can be found in the Fund Classifications / AIF profile

Query profile (E) Income

Included data fields for the preliminary lump sum:

• ED476A Taxable preliminary lump sum in euro as per Sec. 18 of the Investment Tax Law
• ED476B Zero identifier in ED476A taxable preliminary lump sum in euro as per Sec. 18 of the Investment Tax Law
• ED476D Taxable preliminary lump sum in fund currency as per Sec 18 of the Investment Tax Law
• ED476E Zero identifier in ED476D taxable preliminary lump sum in fund currency as per Sec. 18 of the Investment Tax Law
• EV477 Taxable preliminary lump sum in euro as per Sec. 18 of the Investment Tax Law, per month
• EV478 Taxable preliminary lump sum in fund currency as per Sec. 18 of the Investment Tax Law, per month

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Included data fields with partial exemption rates on the taxable preliminary lump-sum as per Section 18 of Investment Tax Law in euro with partial exemption as per Sec. 20:

• ED476K Equity funds 30% private assets
• EV480 Equity funds 30% private assets, per month
• EV481 Equity funds 60%/80% business assets
• EV482 Equity funds 60%/80% business assets, per month
• ED476M Mixed funds 15% private assets
• EV484 Mixed funds 15% private assets, per month
• EV485 Mixed funds 30/40% business assets
• EV486 Mixed funds 30/40% business assets, per month
• ED476P Property funds 60%, private assets, business assets (tax act), business assets (corporate tax act)
• EV487 Property funds 60% private assets, business assets tax law, business assets corporate tax law per month
• ED476R Property funds 80%, private assets, business assets (tax act), business assets (corporate tax act)
• EV488 Property funds 80% private assets, business assets tax law, business assets corporate tax law per month

Query profile (I) Investment fund prices

• ID928 Preliminary lump-sum in the case of Investment fund units in euro per month
• ID929 Accumulated preliminary lump-sum in the case of Investment fund units

Query profile Fund Classifications / AIF

• GD504K Investment funds with partial tax exemption as per Sec. 20 of the Investment Tax Law
• GV1B6 Investment funds with partial tax exemption as per Sec. 20 of the Investment Tax Law, historical classification
• GD504L Investment funds with partial tax exemption as per Sec. 20(4) of the Investment Tax Law
• GV1B7 Investment funds with partial exemption as per Sec. 20 (4) of the Investment Tax Law, historical classification

For each WM field an extensive functional field description is available via the optional module wmGuide, often with links to the relevant regulation like the investment tax law.

Pursuant to Section 19 of the Investment Tax Law (InvStG), the result from the sale of investment fund units is to be reduced by the preliminary lump-sum scheduled as income during the time of possession in the sense of Section 18 of the Investment Tax Law (InvStG).

In the year of the acquisition of the investment fund units, the preliminary lump-sum reduces by one-twelfth for each month preceding the month of the acquisition pursuant to Section 18(2) of the Investment Tax Law (InvStG). A partial exemption pursuant to Section 20 of the Investment Tax Law (InvStG), however, does not reduce the preliminary lump-sum as correction factor for the sale result.

The correcting variable for the sale result is therefore principally to be determined as follows:

1. For the year of the acquisition of the units, the possibly reduced amount of the preliminary lump-sum indicated under the month of the acquisition in field ID928 Preliminary lump-sum in the case of Investment fund units in euro per month is to be considered.

2. For full calendar years followed by the acquisition, in which the units were continuously held by the investor, the accrued preliminary lump-sum is to be taken from the field ID929 Accumulated preliminary lump-sum in the case of investment fund units.

Please note that the preceding examples do not constitute any guidance or recommendation to use certain data fields. Furthermore, no completeness is guaranteed. In the event of any questions concerning content or function of WM data, please refer to the WM Datenservice help desk.

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Information from WM on the preliminary lump sum and partial exemption can be found on the following special information and FAQ WM Datenservice:

• FAQ WM Datenservice
• WM Data on the Reform of the German Investment Taxation in 2018
  Special information F10 from 31.03.2017
• WM Data on the Reform of the German Investment Taxation – Part X Preliminary Lump Sum as per Section 18 of the Investment Tax Law
  Special information F26 from 03.08.2018

Note:

Please note that all customer and special information from WM Datenservice are password protected since 16.04.2012. If you do not have your login data available or not known, please contact WM Datenservice via E-Mail.

The preliminary lump sum is determined and published by WM Datenservice for all relevant domestic and foreign investment funds.

Information on the delivery of the preliminary lump sum from FAQ WM Datenservice:

As a rule, deliveries are carried out on three days to be determined annually from 10 January of each year (1st delivery for investment funds with available prices at the beginning/end of the year, 2nd delivery for investment funds with different prices, 3rd delivery for investment funds without available prices and therefore "nondeterminable" preliminary lump sums). WM communicates the delivery dates in a Special Information issue in the 4th quarter of the previous year.

Delivery dates 2024 for the preliminary lump sum for 2023

Dates for delivery of the preliminary lump sum in January 2024, determined for the calendar year 2023:

• 11.01.2024
• 12.01.2024
• 17.01.2024

Source:
Special information F26 from 31.10.2023

Corrections to preliminary lump sums

Corrections to preliminary lump sums are based on subsequently received changes in data that require a recalculation. Reasons for corrections include updated prices, distributions and changes to master data as well as adjustments due to fund mergers and other relevant events.

These corrections are carried out on the last Wednesday of the month from February to November inclusive.

Besides the information on the preliminary lump sum and partial exemption, also other tax relevant data for funds are available in the extensive data spectrum of WMACCESS. These include:

• fund revenues
• real estate profits
• equity profits
• fund classifications / AIF
• accumulated deemed distribution income
• accumulated increase
• accumulated distributed past capital gains
• accumulated substance distributions
• rectified accumulated deemed distribution income
• securities master data for fiscal classification

On some of the mentioned topics there were legislative changes, as for example the reform of the German Investment Taxation. The extensive WMACCESS data spectrum also covers a large number of other contents in addition to the topics mentioned above.