Subsequent income-related expenses after the start of the final withholding tax

The ban on deducting income-related expenses under the flat-rate withholding tax also applies to subsequent income-related expenses for investments from which no income has flowed since the start of the flat-rate withholding tax.

The ban on the deduction of income-related expenses introduced with the flat-rate withholding tax also applies if expenses incurred after December 31, 2008 relate to investment income received before the start of the flat-rate withholding tax on January 1, 2009. The Federal Fiscal Court has already ruled in similar cases. The current case concerned investments from which no income accrued after the introduction of the flat rate withholding tax. In this case, too, the Federal Fiscal Court has now confirmed the ban on deducting income-related expenses.