German Investment Taxation – Reform Ahead

July 24, 2015

The German Ministry of Finance (Bundesfinanzministerium) circulated a discussion draft bill on the reform of fund taxation (‘Draft Bill’) on 22 July 2015.

The Draft Bill contains significant changes to the German tax environment regarding funds and investment activities, in particular the following:

  • A complete revision of the German fund taxation regime; and
  • The abolishment of the 95% participation exemption for gains from portfolio shareholdings.

The contemplated changes shall generally come into effect on 1 January 2018.

In the following the most essential aspects of the Draft Bill will be summarized. We expect that the debate of the Draft Bill will be controversial in nature so that intermittent updates on any new development will be provided.

Read "German Investment Taxation - Reform Ahead".