CapTrader German tax return with BubbleTax
German tax return with CapTrader as a private investor
CapTrader is an introducing broker based in Düsseldorf that has offered access to stocks, ETFs, options, futures and CFDs on international exchanges through the Interactive Brokers platform since 2011. As with all IBKR-based brokers: CapTrader does not withhold German capital gains tax and does not issue an annual tax certificate under German law. As a private investor you calculate your capital income yourself and enter it in Anlage KAP (capital income), KAP-INV (investment funds) and SO (other income) of your German tax return.
BubbleTax is the tax software for that. You upload the Flex Query export, the configurable data export of the IBKR account management that CapTrader uses as well; BubbleTax calculates under German tax law and delivers a German tax report with the values per form line. You see what was calculated in a free preview before you pay. The sample report as PDF shows how the report is structured.
BubbleTax is an independent provider and has no business relationship with CapTrader. The name only describes which brokerage accounts the report works for.
What CapTrader clients have to calculate for the German tax return
- Gains and losses from stocks, ETFs, options, futures and CFDs under the FIFO method: the units bought first count as sold first (§ 20 Abs. 4 Satz 7 EStG).
- Dividends and withholding tax credited under the applicable double taxation treaty
- Foreign currency gains from USD, GBP and other currency sub-accounts
- Corporate actions such as stock splits, spin-offs (a company splits off a part and books shares of the new company into your account) and mergers
- Vorabpauschale and partial exemption for ETFs and funds under the German Investment Tax Act (InvStG): a notional minimum return mainly on accumulating funds (§ 18 InvStG) and the tax-free share of fund income by fund type, 30 percent for equity funds (§ 20 InvStG)
- Conversion of all transactions into euros at ECB reference rates
BubbleTax handles all six from a single file. The section "In brief" at the end of this page explains the terms. How the values map to the lines of Anlage KAP, KAP-INV and SO is explained on the page How BubbleTax works.
Doing the CapTrader tax return yourself: three steps
- Export the Flex Query. Create a Flex Query as an XML file in the CapTrader or IBKR account management. The step-by-step guide is at Guide: exporting the Flex Query.
- Upload to BubbleTax. The free preview shows which transactions were recognised.
- Download the tax report. Two PDFs: the tax summary with the values for Anlage KAP, KAP-INV and SO, and the detail report with every single transaction and its FIFO matching.
You transfer the values into ELSTER yourself or hand the report to your tax advisor. BubbleTax does not submit anything to the tax office and does not replace tax advice.
CapTrader and Interactive Brokers: same data, same report
Since CapTrader uses the Interactive Brokers infrastructure, you export the same Flex Query XML as direct IBKR clients. The tax obligations and the calculation are identical; the detailed explanation is on the page Interactive Brokers German tax return. Questions about plans, the preview and multiple accounts are answered on the page Frequently asked questions about the tax report. The BubbleTax home page gives the overview of tax reports for Interactive Brokers, CapTrader and other IBKR-based brokers.
In brief
The technical terms on this page, one paragraph each. Legal bases in brackets.
- Flex Query
- The configurable data export in the Interactive Brokers account management, also used by introducing brokers such as CapTrader or LYNX. BubbleTax needs it as an XML file with nine sections. Once set up, you export it again for each tax year.
- FIFO
- First In, First Out: when you sell, the units bought first count as sold first (§ 20 Abs. 4 Satz 7 EStG). This determines the acquisition cost and thus the gain or loss. IBKR uses other methods by default; BubbleTax rebuilds the positions under FIFO.
- Vorabpauschale
- A notional minimum return on fund units (§ 18 InvStG): the amount by which a fund's distributions in a calendar year fall short of the base return. It mainly affects accumulating ETFs that distribute little or nothing. BubbleTax calculates it from your holdings and distributions.
- Partial exemption (Teilfreistellung)
- A fixed share of fund income stays tax-free, depending on the fund type (§ 20 InvStG): 30 percent for equity funds, 15 percent for mixed funds, 60 percent for real estate funds, 80 percent for foreign real estate funds. It applies to distributions, the Vorabpauschale and gains from selling the units.
- InvStG
- The German Investment Tax Act governs how income from investment funds and ETFs is taxed at investor level: distributions, Vorabpauschale and disposal gains (§ 16 InvStG), with the Vorabpauschale (§ 18 InvStG) and partial exemption (§ 20 InvStG). These values belong in Anlage KAP-INV.
- Spin-off
- A corporate action: a company splits off a part and books shares of the new company into your account. For tax purposes it has to be determined whether the new shares replace the old ones and how the acquisition cost is allocated (§ 20 Abs. 4a EStG). BubbleTax detects spin-offs from the Flex Query section Corporate Actions.
- Anlage KAP
- The income tax return form for capital income: dividends, interest, gains and losses from shares and derivatives, creditable withholding tax. The report names the line for every value.
- Anlage KAP-INV
- The form for investment income without German withholding at source, as with IBKR: distributions, Vorabpauschale and gains from selling fund units (§ 16 InvStG).
- Anlage SO
- The form for other income. Relevant for investors in the case of private sales transactions under § 23 EStG; the report shows such values separately from capital income.
See for yourself before you pay.
Upload your CapTrader Flex Query XML and get your full tax report.