Kapitalertragsteuer

capital gains tax, withholding tax on investment income

noun ka-pi-TAL-er-traks-shtoy-er Rare

Usage Note

Kapitalertragsteuer is the 25% flat-rate withholding tax (Abgeltungsteuer) levied in Germany on interest, dividends, and capital gains. Banks deduct it automatically. It replaced the progressive income tax rate on investment income in 2009.

Examples

"Auf Zinserträge wird automatisch Kapitalertragsteuer einbehalten."

Natural Translation

Capital gains tax is automatically withheld on interest income.

Literal Translation

On interest-earnings is automatically capital-gains-tax withheld.

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