Investors can submit an exemption order to their bank or asset manager for the use of the lump-sum saver's allowance. This releases the respective institution from its obligation to pay withholding tax on investment income from interest, dividends or sales proceeds on behalf of the investor. An upper limit of 1,000 euros (in the case of individual assessment) or 2,000 euros (in the case of jointly assessed partners) applies.
Those who maintain accounts and/or portfolios at different institutions should divide their own exemption order according to the investment amount and the expected return/interest. Although it is also possible to reclaim the saver's allowance via the income tax return, this has the disadvantage that the taxes initially paid are not invested and thus cannot generate a return until the tax office refunds them.
Unused exemption amounts cannot be carried over to the following year. However, it is possible to adjust exemption orders in the course of the year.