The tax and legal treatment of carried interest in Germany shares many similarities with the treatment in other main fund jurisdictions, but there are distinct differences. While the effective tax rate paid by carried interest recipients under current German tax law is generally within the range of such other fund jurisdictions, the technical tax treatment differs. These and other legal and structural differences must be carefully considered in cases of cross-border carry schemes and when structuring international funds with German-based carry recipients.
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Tax and legal treatment of carried interest in Germany
This article was first published in The Definitive Guide to Carried Interest by PEI in September 2017.