WISE Cashback

[DerAufklaerer]

Wise Europe is subject to the tax jurisdiction of Belgium, where a 30% withholding tax applies to cashback payments.

We automatically deduct this tax and pay it to the Belgian tax authorities before adding the cashback to your account.

Cashback for EUR/GBP/USD ist automatically, i can not deativate it.

When you hold your money in assets with Wise, you may earn taxable and/or reportable income for which you are responsible under the local laws and regulatory authorities in your tax jurisdiction(s). If you require assistance in calculating income or gains from your investments, we would recommend that you consult a tax adviser. Wise provides clients using our Assets feature with a comprehensive revenue statement in relation to their trading activity with Wise - but we cannot provide additional tax advice.

• I heard you have to pay tax on it in Germany?

Until now WIse has no TIN of me.


Wise pays balance cashback each month based on the EUR, GBP and USD you hold in your Wise account. You agree that the cashback rate is variable and that we may change the rate and/or stop paying cashback at any time. For eligible balances held in Wise accounts in June 2023, Wise paid an annualised cashback rate of:

• 1.79% for any EUR
• 3.12% for any GBP
• 3.85% for any USD

https://wise.com/help/articles/b8sVSdAzytqVamfajSirb/how-does-balance-cashback-work

 

[troubled soul]

Yes, you may have to pay taxes on the cashback you earn from Wise in Germany. According to the German tax authorities, cashback is considered income and is therefore taxable. The amount of tax you owe will depend on your individual tax situation.

Wise is required to deduct a 30% withholding tax on cashback payments made to customers in Belgium. This is because Belgium has a tax treaty with Germany that requires Wise to withhold tax on certain types of payments made to German residents.

However, you may be able to claim a refund of the withholding tax if you are a German resident and you have paid the relevant German taxes on the cashback. To do this, you will need to provide Wise with a copy of your German tax return.

Wise does not currently collect TINs from its customers. However, if you are a German resident and you earn more than $10,000 in cashback from Wise in a year, you will be required to provide Wise with your TIN.

 

[EliasIT]

All income is taxable so the cashback!

 

[DerAufklaerer]

For me, Wise is no longer a traditional electronic money institution.

The probability that everything will be reported is much greater with Casback.

What can be done? Withdraw money and go to 0?

 

[wellington]

Wise pays balance cashback each month based on the EUR, GBP and USD you hold in your Wise account. You agree that the cashback rate is variable and that we may change the rate and/or stop paying cashback at any time. For eligible balances held in Wise accounts in June 2023, Wise paid an annualised cashback rate of:

• 1.79% for any EUR
• 3.12% for any GBP
• 3.85% for any USD

Interesting, a few years ago, they wanted to charge for having a balance in Euro's over a certain point in the account.

 

[DerAufklaerer]

UPDATE:

WISE Support can deactivate the Cashbcak. Write e-Mail

Hello



Thank you for contacting us.


I have now disabled your cashback feature as you do not wish to participate for tax reasons.



If you have any further questions, please do not hesitate to ask - we are here for you.