Private Equity Magazin

Share
- Facebook
- LinkedIn
- WhapsApp
- Copy URL
German Bundestag Passes New Exit Tax on Investment Fund Shares

On 18 October 2024, the German Bundestag passed the introduction of a new exit tax regime as part of its session on the Annual Tax Act 2024. Provided the Bundesrat approves (as expected), in the future, shares in (special) Investment funds held privately will also be subject to exit taxation....
Share
- Facebook
- LinkedIn
- WhapsApp
- Copy URL
Potential Double Taxation of Distributions from a Foreign Trust

In individual cases, distributions from a taxopaque foreign family trust to a German tax resident beneficiary may be subject to both gift tax and income tax. This was recently decided by the Munich Fiscal Court, basically confirming the guidelines laid down by the Federal Fiscal Court. ...
Share
- Facebook
- LinkedIn
- WhapsApp
- Copy URL
Corporate Governance – What you need to know about German law

The German Chapter of the international legal guide "ICLG - Corporate Governance Laws and Regulations" covers common issues in corporate governance laws and regulations – including in management bodies, shareholders & other stakeholders, transparency & reporting, and corporate social responsibility....
Share
- Facebook
- LinkedIn
- WhapsApp
- Copy URL
Potential gift tax relief for capital contributions to corporate entities

According to a recent ruling dated May 23, 2024, published on August 1, 2024, the Münster Fiscal Court has affirmed the requirement of a subjective element to trigger German gift tax pursuant to Section 7 para. 8 German Inheritance and Gift Tax Act....
Share
- Facebook
- LinkedIn
- WhapsApp
- Copy URL
US Entity Classification Considerations for Non-US Investment Funds

The US federal income tax system has a unique entity classification regime that allows certain types of entities to choose their tax classification (i.e., opaque versus transparent). This choice is made by mailing to the US Internal Revenue Service a Form 8832 on which the entity literally checks a box corresponding to its desired tax classification, hence the phrase “check-the-box” election. This article provides an overview of the check-the-box rules and discusses some related considerations for non-US investment funds....
Share
- Facebook
- LinkedIn
- WhapsApp
- Copy URL
BFH confirms tax treatment of carried interest as profit allocation

In its decision dated April 16, 2024 (VIII R 3/21), the German Federal Fiscal Court (“BFH”) confirmed that carried interest is part of a profit allocation for German tax purposes and is not a hidden service fee that is deemed to be paid by the investors to the carry partnership. The BFH thus confirmed the legal opinion of the plaintiff, but for procedural reasons, however, the case was referred back to the competent Munich tax court. Read more about the details....
Share
- Facebook
- LinkedIn
- WhapsApp
- Copy URL
Proposed amendment to German Investment Ordinance – Additional flexibility for alternative Investments of regulated Pension schemes

On 27 June 2024, the draft of a Second Act to Strengthen Occupational Pensions and to Amend Other Laws was published. The draft, inter alia, proposes amendments to the German Investment Ordinance. Our fund experts have summarised what this means for pension fund investments in particular....
Share
- Facebook
- LinkedIn
- WhapsApp
- Copy URL
Fund Formation 2024 – Law and Practice in Germany

In this guide, leading practitioners answer the same key questions for their respective jurisdictions. PE Magazin authors Tarek Mardini, Enzo Biagi and Antonia Puglisi contributed the chapter on fund formation issues in Germany....
Share
- Facebook
- LinkedIn
- WhapsApp
- Copy URL
Private Equity Transactions – German law at a glance

Quick guide with respect to German legal private equity insights, including inter alia types of private equity transactions, corporate governance, dissenting shareholder rights, key purchase and shareholders’ agreement provisions, participation of the target company’s management, tax and financing and exit strategies. ...
Share
- Facebook
- LinkedIn
- WhapsApp
- Copy URL
Q&A Venture Capital on the German market

Learn more about the German practice of venture capital law, including equity structure, typical investment periods, incentives as well as insights and opinions on the most common legal issues. ...
Share
- Facebook
- LinkedIn
- WhapsApp
- Copy URL
BAI study – Infrastructure is becoming the most popular asset class among institutional investors

A considerable amount of capital is required for the digital and ecological transformation of the economy and the modernisation of existing dilapidated infrastructure. This asset class is becoming increasingly popular among institutional investors, as a recent study by the industry association BAI shows. However, there are still some challenges to overcome with regard to the German market....
Share
- Facebook
- LinkedIn
- WhapsApp
- Copy URL
German Bundesbank reporting – Sanctions for non-compliance

From 30 April 2024, Regulation (EU) 2022/1917 of the European Central Bank (ECB) on infringement procedures in cases of non-compliance with statistical reporting requirements in connection with the monthly reports to the German Bundesbank will apply. Under this regulation, non-compliance with statistical reporting requirements is to be sanctioned more severely....
Share
- Facebook
- LinkedIn
- WhapsApp
- Copy URL
German Federal Fiscal Court confirms its case law on the taxation of management participations

In two recent judgements, the German Federal Fiscal Court (BFH) has confirmed that the profit from an employee's participation in their employer's company is not taxable as income from employment, even if the participation was previously acquired at a discount....
Share
- Facebook
- LinkedIn
- WhapsApp
- Copy URL
Investment funds 2024 – German law explained in brief

The Chambers Legal Practice Guide Investment Funds provides a global comparison of the legal, tax and regulatory aspects related to the establishment and operation of investment funds in the individual countries. PE Magazin authors Amos Veith, Jens Steinmüller, Ronald Buge and Stephan Schade provide everything worth knowing about the German market and legal system....
Share
- Facebook
- LinkedIn
- WhapsApp
- Copy URL
Private Client 2024 – German tax law at a glance

This country-specific Q&A provides an overview of private client laws and regulations applicable in Germany. It covers common issues in private client laws, including pre-entry tax planning, connection factors, taxation issues on inward investment, succession planning, trusts and foundations, immigration issues and tax treaties....