The Advance Lump Sum Tax is a concept in German tax law. It serves to tax unrealized earnings from investment funds, such as the Tomorrow Better Future Stocks Fund. The Advance Lump Sum Tax becomes due when the value of the fund has increased in the past year – even if you haven't sold it. This ensures that accumulating funds are not indefinitely favored for tax purposes by the German state. 

There is an exemption limit of €1,000 per person (tax-free allowance) for the Advance Lump Sum Tax . In your tax return, you can report taxes paid on the Advance Lump Sum Tax and, if your tax-free allowance was not fully used, potentially receive a refund. 

Once the transition to our partner lemon.markets is complete, you can alternatively create an exemption order directly in the app. You can check how the Advance Lump Sum Tax was specifically calculated for you through the document in your mailbox (Tomorrow App -> Settings -> Documents -> Mailbox).