Inflow of bonus interest from a building society savings contract

Bonus interest from a home loan and savings contract is only subject to flat-rate or income tax when it is received and therefore generally only when the home loan and savings balance is paid out.

Bonus interest from a home loan and savings contract does not accrue to the taxpayer when the interest is shown annually in a bonus account held by the building society. According to a ruling by the Federal Fiscal Court, this applies in any case if a claim to the bonus interest only arises after a waiver of the building society loan, the bonus interest only becomes due when the building society balance is paid out and it can only be disposed of in conjunction with the building society balance.