The products available on Piece are security-type instruments issued in Germany. As a result, when income distributions or capital gains occur, withholding tax will first be applied in Germany.
In general, the German withholding tax rate may be approximately 26.315%.
What happens after German withholding tax is applied?
You may be able to explore foreign tax credit or refund procedures in your country of residence with respect to the tax withheld in Germany.
However, the required procedures, applicable tax rates, and eligibility for credits or refunds vary depending on your country of residence and individual circumstances.
Please consult a tax advisor in your country of tax residence for guidance.
Tax documents issued by Piece
Piece issues documents covering the previous year's earnings and withholding tax around January each year, which are shared with users. These documents include a Profit Statement and information related to withholding tax.
You are welcome to use these documents when filing your tax return in your country or region of residence.
For example: What happens if you're an Italian resident?
Let's take one country as an example — Italy.
Based on the opinion of tax professionals we have consulted, Italian individual investors could report income received from Germany in their annual Italian tax return and offset the German withholding tax as a foreign tax credit.
Additionally, if the tax rate applicable in Italy is lower than the German withholding tax rate, a portion of the tax withheld in Germany may remain as a tax credit. This credit may potentially be offset against other taxes owed in Italy.
* Please note that the actual treatment will vary depending on each investor's individual tax situation.
Your responsibility for tax filing
As Piece serves customers across multiple countries, we are unable to provide individual tax advice specific to each country.
While we do provide tax documents, it is your own responsibility to determine how to file your taxes, and how to handle any foreign tax credits or refund claims.
For all final tax decisions and filings, please be sure to consult a qualified tax professional.
Sample of profit statement (summary of all the payouts in a single year)
Sample of tax certificate (one certificate per one payout)
