The German customer can only deposit an exemption order with a German bank. This is because the exemption order relates to the direct payment of income tax on investment income (withholding tax), which only German banks are obliged to do
The customer can use the exemption order to ensure that the German bank only pays the withholding tax if the investment income exceeds the tax-free amount on investment income (“saver’s allowance” of currently 801 euros (single assessment) / 1602 euros (joint assessment of married couples)).
If you have a custody account at Baader Bank, you can submit your exemption order to the bank using the following form: Download Freistellungsauftrag Baader Bank.
The LLB as a foreign bank (from the German point of view) is not subject to the obligation to pay the final withholding tax. The investment income earned on a foreign custody account must therefore be declared by the client herself as part of her income tax return. In the context of the tax return, the “saver’s allowance” is then taken into account ex officio, insofar as it has not already been exhausted by an exemption order with a German bank.