Dividends are taxed in the case of residents of Germany in accordance with the provisions of German income tax law and German corporation tax law.

The tax withheld covers in full the German income tax payable on relevant private capital gains (and is hence known in German as “Abgeltungssteuer” or flat-rate tax).

Irrespective of this, shareholders can apply to have the dividends included with all other capital gains made in the calendar year in their personal income tax declaration where this leads to a lower overall level of income tax payable (known in German as the “Günstigerprüfung” or more favorable tax treatment).