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Absplitt.
angemeldet
Feb 28, 2015 06:47
9 yrs ago
3 viewers *
German term

Einkommensteuer abgelten

German to English Bus/Financial Law: Taxation & Customs Bank statements
'Mit Belastung der Abgeltungsteuer ist die Einkommensteuer grundsätzlich abgegolten.'

This is part of a bank statement, specifically a Bausparvertrag (mortgage savings plan), an explanatory note at the bottom.
I'm not sure what 'abgelten' means in this context. Here is my attempt:

By debiting the flat rate withholding tax, income tax is generally reimbursed/covered/compensated.

Thanks in advance for any suggestions!
Proposed translations (English)
4 +1 any income tax owed on capital income shall be deemed paid
5 +2 income tax is settled
4 income taxes are deemed paid
3 satisfy (imputed) liability to income tax
3 -1 the income tax is largely paid
References
Info
Change log

Feb 28, 2015 09:40: Sebastian Witte changed "Field (specific)" from "Finance (general)" to "Law: Taxation & Customs"

Discussion

Jacek Konopka Feb 28, 2015:
What about "settled?.

Proposed translations

+1
2 hrs
German term (edited): ist die Einkommensteuer grundsätzlich abgegolten
Selected

any income tax owed on capital income shall be deemed paid

Once the definitive withholding tax has been debited any income tax owed shall thereby be deemed paid/settled as well.

I would not translate grundsätzlich, the tax burden is either deemed paid (i.e. in full) or it is not. No in-between situation is conceivable.

capital income: Kapitakeinkünfte (sozusagen 'Einfünfte aus Kapital')

From a technical perspective, the meaning of the sentence as a whole is explained here: http://www.stk-spielmann.de/steuerberatung/steuerberatung-fu...

It is basically about capital income being taxable, i.e. subject to income tax, which tax liability is then deemed settled by paying Abgeltungsteuer (there are a few good, but slightly inaccurate basic translations for this, with the term of art, however, being definitive withholding tax, because it covers the tax burden for the respective type of income sort of globally/pauschal (this is called 'ist damit abgegolten' in German), and is withheld at source, i.e. where it emerges) on the capital income earned.

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Note added at 3 hrs (2015-02-28 09:56:23 GMT)
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>> EinKünfte aus Kapital
Note from asker:
Thanks, Sebastian, for your explanation, that certainly helped me decide on my final translation, which was a combination of the suggestions posted here, so thank you all for your contributions! Monika C
Peer comment(s):
agree Edgar Bettridge
11 mins
Thank you, Edgar.
neutral Ted Wozniak : adding a bit that isn't there and Kapitaleinkünfte is better rendered as "investment income". But deemed paid is certainly a correct option here.
2 hrs
I chose to go with "capital income" from the IMF glossary, and investment income is fine, too. As for "Adding a bit that isn't there", the bit about investment/capital income is necessary for the sentence to make sense.
neutral TechLawDC : "Deemed paid" is very unlikely in a bank statement. Furthermore, as a general proposition it is false. Nobody "deems" that deduction of withholding pays the tax per se (since the income tax is progressive); it just satisfies the withholding obligation.
2 hrs
I appreciate your comment, TechLawDC. I will think about it.
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4 KudoZ points awarded for this answer. Comment: "Thanks again for all your comments & suggestions!"
-1
1 hr
German term (edited): ist die Einkommensteuer grundsätzlich abgegolten

the income tax is largely paid

Mit Belastung der Abgeltungsteuer ist die Einkommensteuer grundsätzlich abgegolten = The income tax is largely paid via the deduction of income tax withholding.
Alternative (slightly less ambiguous): The income tax is largely paid via the imposition of income tax withholding.
2nd alternative (entirely sufficient): The income tax is largely paid via income tax withholding.

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Note added at 1 hr (2015-02-28 07:58:47 GMT)
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Considering that the source is a bank statement, the following might be preferable:
The income tax has been largely paid via the income tax withholding.
Peer comment(s):
neutral Edith Kelly : grundsätzlich and largely are two different terms
4 mins
Perhaps so, but in the present context I strongly prefer "largely" to "basically" or some such bland word. "Essentially" is a possible alternative; I don't like it because it is not a word that a quantitative person such as an accountant would use.
neutral Edgar Bettridge : think that "largely" implies "mostly" - doesn't it mean more "fundamentally" here?
1 hr
It means that it is paid or not quite paid. The third possibility, that it is overpaid, is obvious to a child of 6 and should not concern us here. Hence I prefer "largely", which is vague enough to cover at least the first 2 situations. "Essentially"?
disagree Ted Wozniak : sorry, you are reading far too much into it with "largely". And while "is paid" is absolutely correct, largely distorts the meaning too much for a neutral rating.
3 hrs
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+2
4 hrs

income tax is settled

Abgeltungssteuer is final withholding tax. By statute, payment (withholding) of the tax satisfies/settles any income tax due on the investment income. (With some rare exceptions, but that is not the issue here.)

And I wouldn't even bother with "grundsätzlich" here. While in this instance, it does mean "final/absolutely/no ifs, ands or buts", it is rather superfluous in English, esp. if you use "final" withholding tax. It would be like saying "with payment of the final withholding tax, the income tax is deemed finally settled" or some such nonsense.
Peer comment(s):
neutral Sebastian Witte : As for "Adding a bit that isn't there", the bit about investment/capital income is necessary for the sentence to make sense.
13 mins
neutral TechLawDC : 100% false. If we assume the country is Germany, German income tax is progressive, with 5 brackets. I don't know what the withholding percentage for bank interest etc. is, but likely it's not at the highest rate, and not necessarily the taxpayer's rate.
13 mins
agree Bruce Campbell : Agree about the final discharge of the tax liability. But I believe you have the option of declaring the income if this would result in it being assessed at a lower tax rate. That would account for the "grundsätzlich".
2 hrs
agree RobinB : But I would certainly bother about translating grundsätzlich = as a rule/generally, because (even though the Abgeltungsteuer is theoretically "definitive"), the taxpayer may actually receive an ESt refund if their composite tax rate is less than 25%.
9 hrs
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6 hrs

satisfy (imputed) liability to income tax

grundsätzlich > in pirinciple, namely by the imputation system, as with the UK ACT/Advance Corporation Tax System of old with any payment made on company divdiends imputed on a/c of both 1. mainstream corporation tax and 2. the dividend-recipient's liability to income tax.
Example sentence:

www.moga.mo.gov/.../10500002621.HTML Diese Seite übersetzen Failure to satisfy the liability or provide a copy of the approved payroll ... of the director of revenue before the tax liability is satisfied,

Reference:

http://www.proz.com/?sp=gloss/term&id=5552022

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10 hrs

income taxes are deemed paid

By charging capital gain taxes the income tax liability is deemed paid
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Reference comments

33 mins
Reference:

Info

Where income is subject to withholding tax, the income tax liability is normally settled through the withholding system and no returns or assessments are required.
http://www.gerardassociates.co.uk/tax-facts-germany/


The income tax is paid through the withholding-tax system, such that the tax is deducted or withheld at the source.
http://goo.gl/O0yt3j


Income tax is also collected through withholding tax.
http://www.clarkecountyiowa.com/Pages/Tax-Information.aspx
Note from asker:
Thanks so much for the references, heidi! Monika C
Peer comments on this reference comment:
agree Edgar Bettridge : why not post an answer using this - looks like you are on right track
2 hrs
Thanks, Edgar. In the field of finance/taxation, I am a total novice. So, if you could use the reference to help the asker, please feel free to go ahead and post an answer.
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