investment income that was generated abroad also falls under the "abgeltungsteuer". the federal republic of germany concluded with many countries double taxation agreements so that the regulations differ from each country to country. the aim is to avoid that one taxpayer is charged with similar taxes more than once on the same income for the same period. though the "abgeltungsteuer" is not applicable in foreign countries, the taxpayer has the responsibility to declare the income for taxation at the local tax office. foreign taxes on capital gains are only chargeable up to a height of 25% according to german income tax act (art. 43 a para. 3). nevertheless, there can be possibility that losses from other securities transactions are added to the original loss. that leads to a paid tax on capital gains of more than 25% seen over the entire calendar year. such a negative surplus will not been refunded by the tax authorities and is also not transferable to the following years.