Interactive Brokers
Why do Interactive Brokers users need a tax report?
Interactive Brokers (IBKR) is one of the world's largest online brokers – founded in 1978 by Thomas Peterffy, listed on NASDAQ (IBKR), S&P 500 member – with access to over 150 markets in 34 countries. For German investors, however, there is one central problem: IBKR does not withhold German capital gains tax automatically and does not provide an annual tax certificate according to German law.
This means: Every IBKR user who is tax-resident in Germany must calculate their own capital gains and report them in their tax return.
What German investors need to calculate themselves
- Gains and losses from stocks, ETFs, options and futures using the FIFO method (§ 20 Abs. 4 Satz 7 EStG)
- Foreign currency gains from USD, GBP and other currency accounts (§ 20 Abs. 2 Nr. 7 EStG)
- Dividends and withholding tax with correct crediting under double taxation agreements
- Corporate actions such as stock splits, spin-offs and tender offers
- ETF advance lump sum and partial exemption according to the Investment Tax Act (InvStG)
- Conversion of all transactions to EUR using ECB reference rates
How BubbleTax solves the problem
BubbleTax processes your IBKR FlexQuery XML file and automatically creates a complete tax report:
- Export XML file – Create a FlexQuery in your IBKR account (Activity Statement, all sections, XML format)
- Upload – Upload the XML file to BubbleTax
- Automatic calculation – Our algorithm calculates all tax-relevant values
- Get PDF report – Download your finished tax report
The report contains all values for German tax forms (Anlage KAP, KAP-INV and SO) – directly transferable to your tax return or as documentation for your tax advisor.
What BubbleTax calculates
| Area | Details |
|---|---|
| Stocks & ETFs | FIFO calculation of all buys and sells |
| Options | Premiums, exercises, expiry – correctly assigned |
| Futures & CFDs | Derivatives according to § 20 Abs. 2 Nr. 3 EStG |
| Dividends | Gross/net with creditable withholding tax |
| Currency gains | FIFO calculation for all foreign currency accounts |
| Corporate actions | Splits, spin-offs, mergers, tender offers |
| ETF classification | Partial exemption and advance lump sum under InvStG |
Typical challenges with IBKR data
Options across year-end: A short put premium in December with exercise in January – two tax events in two different tax years. IBKR does not correctly reflect this.
Foreign currency FIFO: USD balances are separate economic assets for tax purposes. A stock purchase in dollars can trigger an FX gain just from the dollar outflow – BubbleTax calculates this automatically.
ETF classification: IBKR only knows "ETF". The German tax office distinguishes InvStG funds (partial exemption), ETNs (§ 20 EStG) and gold ETCs (§ 23 EStG). BubbleTax uses professional securities master data for correct classification.
Ready for your tax report?
Upload your Interactive Brokers FlexQuery XML and get your complete tax report.