German Investment Tax Act for Alternative Investment Funds

April 03, 2013

The German Ministry of Finance published on 4 December 2012 a draft bill amending the German Investment Tax Act, which is the special German tax regime for German investors investing in German and foreign investment funds. This draft bill was approved (in a revised version) by the German Federal Cabinet in January 2013. On 22 March 2013 the German Bundesrat published its comments.

The amendment of the German Investment Tax Act is expected to become effective by 22 July 2013, i.e. the date upon which also the AIFM Directive is anticipated to be implemented into German law. Under the new Investment Tax Act, subject to certain grandfathering provisions, for any alternative investment fund (AIF) two new categories of fund structures will be introduced for German tax purposes: investment partnerships and investment corporations (whereas UCITS and similar open-end investment funds will be treated as so-called “investment funds”).

Read “German Investment Tax Act for Alternative Investment Funds.”